Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 7, Problem 35IOQ
Which of the following is not an advantage of establishing an enterprise risk management system within an organization?
- (1) Reduces operational surprises.
- (2) Provides integrated responses to multiple risks.
- (3) Eliminates all risks.
- (4) Identifies opportunities.
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Which of the following are correct regarding why management uses internal controls? (Check all that apply.)
Multiple select question.
Protect assets.
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1. How does internal control impart on the achievement of organization’s goals?
2. Why risk management process is essential in addressing risks that the organization is facing?
3. Differentiate qualitative and quantitative assessment of risks.
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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- The 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_forwardWhich of the following is not a principle relating to risk assessment? a. Identifies and analyses risks and respond to changes b. Designing the information systems c. Specifies objectives with sufficient clarity d. Considers the potential for fraud in assessing risksarrow_forwardDescribe how Enterprise Risk Management adds more value to an organization than Silo Risk Management.arrow_forward
- Enterprise risk management A. Guarantees achievement of organizational objectives. B. Requires establishment of risk and control activities by internal auditors. C. Involves the identification of events with negative impacts on organizational objectives. D. Includes selection of the best risk response for the organization.arrow_forwardWhy risk management process is essential in addressing risks that the organization is facing?arrow_forwardWhich 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_forward
- 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 Culturearrow_forwardDiscuss the weaknesses in COSO’s internal control framework that led to the development of the COSO Enterprise Risk Management framework.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_forward
- Explain the connection between business risk and Audit risk model (inherent risk x control risk x detection risk)arrow_forwardInformation Risk Analyst (IT Controls Audit) will help the organization assess risk controls and their effectiveness for current and future design improvements. To be successful in this career path YOU must be familiar with the concept Information Risk. a. Explain the term ‘information risk’ in your own words. b. Discuss three (3) causes of information risk. c. Discuss the three (3) main ways to reduce information risk. d. Differentiate between ‘assurance services’ and ‘non-assurance services,’ giving examples of each.arrow_forwarda)discuss the following risks: operational risk, model risk, liquidity risk, accounting risk, legal risk, tax risk, regulatory risk, settlement (Herstatt) risk, systemic risk b)compare and contrast view-driven risk management and needs-driven risk management. c)identify the key players in the risk management industry, and discuss how risk management requirements and practices differ amongst these key players. d)discuss some important organizational considerations for an effective risk management system. e)explain what is meant by enterprise risk management, and compare and contrast it with decentralized risk management.arrow_forward
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