Exam (elaborations)
CPA review BEC1
- Course
- Institution
CPA review BEC1 CPA review BEC1 CPA review BEC1
[Show more]
Seller
Follow
akademica
Reviews received
Content preview
CPA review BEC1,CPA review BEC 1
According to the Committee of Sponsoring Organizations (COSO) of the Treadway Commission, which of
the following components of enterprise risk management addresses an entity's assignment of authority
and responsibility?
a. Monitoring.
b. Information and communication.
c. Control activities.
d. Internal environment.
Explanation
Choice "d" is correct. The internal environment component of the enterprise risk management (ERM)
framework includes foundational elements such as organizational structure, assignment of authority and
responsibility, integrity and ethical values, risk management philosophy, commitment to competence and
human resource standards, and similar issues that influence the tone of the organization.
Choice "c" is incorrect. The control activities component of the ERM framework includes key elements
that relate to the policies and procedures that ensure appropriate responses to identified risks, not to the
assignment of authority and responsibility.
Choice "b" is incorrect. The information and communication component of the ERM framework includes
key elements that relate to the identification, capture and communication of information, not to the
assignment of authority and responsibility.
Choice "a" is incorrect. The monitoring component of the enterprise risk management framework includes
key elements that relate to the ongoing management activities or separate evaluations of the ERM
approach adopted by the entity, not to the assignment of authority and responsibility.
According to the Committee of Sponsoring Organizations (COSO) of the Treadway Commission, which of
the following components of enterprise risk management addresses an entity's reporting deficiencies?
a. Event identification.
b. Internal environment.
c. Monitoring.
, d. Control activities.
Explanation
Choice "c" is correct. The monitoring component of the enterprise risk management (ERM) framework
includes key elements that relate to the ongoing management activities or separate evaluations of the
ERM approach adopted by the entity, including addressing reporting deficiencies.
Choice "b" is incorrect. The internal environment component of the ERM framework includes key
elements such as organizational structure, assignment of authority and responsibility, integrity and ethical
values, risk management philosophy, commitment to competence and human resource standards and
similar issues that influence the tone of the organization, not reporting deficiencies.
Choice "a" is incorrect. The event identification component of the ERM framework include key elements
such as identifying the relevant events that may impact an organization and then determining whether the
characteristics of the events are positive (opportunities) or negative (risks), not reporting deficiencies.
Choice "d" is incorrect. The control activities component of the ERM framework includes key elements
that relate to the policies and procedures that ensure appropriate responses to identified risks including
types of control activities and controls over information systems, not to reporting deficiencies.
According to the Committee of Sponsoring Organizations (COSO) of the Treadway Commission, which of
the following components of the internal control integrated framework addresses an entity's timely
reporting of identified internal control deficiencies?
a. Information and communication.
b. Control environment.
c. Monitoring.
d. Control activities.
Explanation
Choice "c" is correct. The monitoring component of the integrated framework includes the principle that
deficiencies should be investigated in ongoing and separate evaluations and that deficiencies should be
reported.
Choice "b" is incorrect. The control environment component includes the tone at the top and the listing of
reporting deficiencies.
Choice "d" is incorrect. The control activities component relates to control policies and procedures but
does not include reporting deficiencies.
Choice "a" is incorrect. The information and communication component includes gathering and
communicating financial and internal control information, but does not specifically address reporting
deficiencies.
, A company that retains a CPA with the appropriate knowledge, skills and abilities to prepare timely and
effective financial reporting is applying the ideas from which principle of effective internal control over
financial reporting?
a. Management philosophy and operating style.
b. Accountability.
c. Financial reporting competencies.
d. Integrity and ethical values.
Explanation
Choice "c" is correct. The financial reporting competencies principle of the control environment
component of internal control integrated framework suggests stronger controls and encourages the
company to retain qualified personnel to handle financial reporting.
Choice "d" is incorrect. The integrity and ethical values principle of the control environment component of
internal control integrated framework suggests stronger controls with high standards of ethical conduct for
top management, but does not address retention of qualified personnel to handle financial reporting.
Choice "a" is incorrect. The management philosophy and operating style principle of the control
environment component of internal control integrated framework suggests strong controls and
encourages management's attitudes to be congruent with strong financial controls, but does not address
retention of qualified personnel to handle financial reporting.
Choice "b" is incorrect. The accountability principle of the control environment component of internal
control integrated framework suggests strong controls and encourages management to hold individuals
accountable for their internal control responsibilities, but does not address retention of qualified personnel
to handle financial reporting.
The Sarbanes-Oxley Act of 2002 requires that the members of the audit committee be independent with
regard to the issuer. Within the meaning of the law, which of the following corporate officers would be
considered independent?
Board
Membe Independen
r t Auditor
a. No No
b. Yes No
c. Yes Yes
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller akademica. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
83100 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now