BEC-01 Enterprise Risk Management, Internal Controls and Business Processes Exam Question and Ans 2025

What is an effective system of internal control? - Ans-An effective system of internal control requires more than adherences to policies and procedures by management, the board of directors, and the internal auditors. It requires the use of judgment in determining the sufficiency of controls, in applying the proper controls, and in assessing the effectiveness of the system of internal controls. The principles-based approach of the framework supports the emphasis on the importance of management judgment. What is the definition of internal control? - Ans-Internal control is a process that is designed and implemented by an organization's management, board of directors, and other employees to provide reasonable assurance that the organization will achieve its operating, reporting, and compliance objectives. Does the COSO framework prescribe which controls an entity should implement for effective internal control?....