Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Chapter 7, Problem 20RQ
To determine
Comment on the given statement related to the framework issued by The Committee of Sponsoring Organizations.
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ENTERPRISE RISK MANAGEMENT (ERM) Explain on how to go about seeking board approval for ERM implementation
For an enterprise wide risk management program to be most effective, it should be led by which of the following?
A.
A management committee.
B.
The chief audit executive.
C.
A centralized coordinator.
D.
Audit committee members.
1. Looking at the COSO framework for Enterprise Risk Management, you will notice that this is present all throughout the various functions and levels in an organization. This is to ensure that policies and procedures are followed in making risk responses and implementing company's directives.
A. Control Activities
B. Risk Assessment
C. Monitoring Activities
D. Risk Culture
Chapter 7 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 7 - Prob. 1RQCh. 7 - Prob. 2RQCh. 7 - Prob. 3RQCh. 7 - Prob. 4RQCh. 7 - Prob. 5RQCh. 7 - Prob. 6RQCh. 7 - Prob. 7RQCh. 7 - Identify the four types of control activities and...Ch. 7 - One basic concept of internal control is that no...Ch. 7 - Prob. 10RQ
Ch. 7 - Prob. 11RQCh. 7 - Prob. 12RQCh. 7 - Prob. 13RQCh. 7 - Prob. 14RQCh. 7 - Prob. 15RQCh. 7 - Prob. 16RQCh. 7 - Prob. 17RQCh. 7 - Prob. 18RQCh. 7 - Prob. 19RQCh. 7 - Prob. 20RQCh. 7 - Prob. 21RQCh. 7 - Prob. 22RQCh. 7 - Prob. 23RQCh. 7 - Management is responsible for designing and...Ch. 7 - Prob. 25QRACh. 7 - Prob. 26QRACh. 7 - Prob. 27QRACh. 7 - Prob. 28QRACh. 7 - Prob. 29QRACh. 7 - Prob. 30QRACh. 7 - Prob. 31QRACh. 7 - During your first audit of a medium-size...Ch. 7 - Prob. 33QRACh. 7 - Prob. 34QRACh. 7 - Which of the following would be least likely to be...Ch. 7 - Prob. 35BOQCh. 7 - Prob. 35COQCh. 7 - Prob. 35DOQCh. 7 - Prob. 35EOQCh. 7 - Prob. 35FOQCh. 7 - Prob. 35GOQCh. 7 - Prob. 35HOQCh. 7 - Which of the following is not an advantage of...Ch. 7 - Prob. 35JOQCh. 7 - Prob. 35KOQCh. 7 - Prob. 35LOQCh. 7 - Prob. 36OQCh. 7 - Listed below are controls that have been developed...Ch. 7 - Prob. 38OQCh. 7 - For each term in the first column, find the...Ch. 7 - Prob. 40AOQCh. 7 - Prob. 40BOQCh. 7 - Prob. 40COQCh. 7 - Prob. 40DOQCh. 7 - Prob. 40EOQCh. 7 - Prob. 41PCh. 7 - Prob. 42PCh. 7 - Prob. 43PCh. 7 - Prob. 44PCh. 7 - Prob. 45ITC
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Similar questions
- Which of the following is not one of the components of COSO’s framework? A. Objective setting which includes setting the objectives and critical success factors B. Continuously monitoring the ERM process C. Risk Assessment to manage risk related to achieving corporate objectives D. Safeguarding assets to prevent or detect unauthorized acquisition, use or disposition E. Control Activities which include policies and procedures to assure that management’s control objectives are metarrow_forwarda) What is internal control? b) Identify the components of COSO’s Enterprise Risk Management. NB: answer question a & b in detailsarrow_forwardThe COSO Enterprise Risk Management Framework ___ A. stresses that effective risk management is comprised of just three interrelated components: internal environment, risk assessment, and control activities. B. helps management manage uncertainty, and its associated risk and opportunity, so they can create and maintain value. C. helps management set risk management policies that, if enforced, guarantee achievement of corporate objectives. D.arrow_forward
- . According to COSO, which component of enterprise risk management (ERM) addresses an entity’s operating structures and core values? A. Review and revision. B. Governance and culture. C. Strategy and objective-setting. D. Information, communication, and reporting.arrow_forwardEnterprise Risk Management The table below refers to seven industries. Required: For each industry, provide an example of a business risk faced by companies that compete within that industry. Then, describe an example of a control that could be used to reduce the business risk that you have identified.arrow_forwardFinancial vs. Operational Control; Behavioral Considerations in the Standard-SettingProcess You have been assigned to a strategic leadership committee that has been charged bythe CEO with developing and implementing a comprehensive management accounting and controlsystem. At the first planning session that you attended, the subject of financial-control systems arose,but there was some uncertainty regarding the nature of such systems and some of the behavioralconsiderations that might have to be made in the design process. You have been asked by the chair ofthe committee to prepare a short written document that could be used as the basis of discussion at thenext meeting. Specifically, you have been asked to define and distinguish between operational control and financial control and how such systems relate to an organization’s management accountingand control system; explain the theory behind the use of flexible budgets, standard costs, and variance analysis as elements of a…arrow_forward
- Following is a list of internal controls. Select the COSO component that best matches each internal control. Internal control a. Implementation of policies to reduce risk of internal control failure. b. Reporting of internal control effectiveness to investors. c. Evaluation of internal control effectiveness by external auditors. d. Identification and management of risks. COSO Control activities Information & communication Monitoring Risk assessment Control environment Assessmarrow_forwardInternal Controls should be created with focus on which aspect of the organization? All of the Above Operational Reporting Financial Reporting Compliance Reportingarrow_forwardWhich one of the following components of internal control over financial reporting sets the tone for the organization? a. Risk assessment. b. Control environment. c. Information and communication. d. Monitoring.arrow_forward
- What are the components of internal control per COSO’s Internal Control—Integrated Framework? a. Organizational structure, management philosophy, planning, risk assessment, and control activities. b. Control environment, risk assessment, control activities, information and communication, and monitoring. c. Risk assessment, control structure, backup facilities, responsibility accounting, and natural laws. d. Legal environment of the firm, management philosophy, organizational structure, control activities, and control assessment.arrow_forwardThe attitudes and actions of those charged with governance concerning an entity's internal control is known as the entity's risk assessment process. O monitoring of controls. control activities. O the control environment.arrow_forwardIT auditors assist organizations by evaluating business and IT-related risks and the effectiveness of the organization's system of internal controls thereby providing to key stakeholders. a) Internal control b) Risk mitigation c) IT governance d) Assurancearrow_forward
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