According to COSO, which of the following is included in the assess-and-report phase of an effective approach to monitoring internal controls?

According to COSO, which of the following is included in the assess-and-report phase of an effective approach to monitoring internal controls?

a. Prioritize findings.

b. Tone at the top.

c. Prioritize risks.

d. Identify controls.

Answer: A

According to COSO, which of the following provides oversight of an entity's enterprise risk management?

According to COSO, which of the following provides oversight of an entity's enterprise risk management?

a. Management.

b. The Board of Directors.

c. The risk officer.

d. Financial executives.

Answer: B

An internal auditor is considering a client's organizational structure as it affects the ethical climate established by company management. Each of the following considerations is valid in this regard, except:

An internal auditor is considering a client's organizational structure as it affects the ethical climate established by company management. Each of the following considerations is valid in this regard, except:

a. The appropriateness of an entity's organizational structure depends in part on the nature of its activities.

b. A company that is highly centralized will have a more diverse ethical culture than a company that is decentralized.

c. A highly structured organization with formal reporting lines may be appropriate regardless of entity size.

d. A decentralized environment may increase the risk that unethical decisions could be made by unit managers.

Answer: B

According to COSO's Enterprise Risk Management Framework, which of the following is an essential element of the internal environment?

According to COSO's Enterprise Risk Management Framework, which of the following is an essential element of the internal environment?

a. Control activities.

b. Risk assessment.

c. Event identification.

d. Ethical values.

Answer: D

The internal auditor who works in enterprise risk management (ERM) performs each of the following activities, except:

The internal auditor who works in enterprise risk management (ERM) performs each of the following activities, except:

a. Giving assurance that the risks of the organization are correctly evaluated.

b. Setting the risk appetite of the organization.

c. Evaluating the risk-management process.

d. Coordinating ERM activities.

Answer: B

According to COSO, each of the following is an example of an appropriate ongoing monitoring activity, except:

According to COSO, each of the following is an example of an appropriate ongoing monitoring activity, except:

a. Periodic analysis of variances between expectations and actual results.

b. Approval of high-dollar transactions by supervisors.

c. Follow-up of customer and vendor complaints regarding amounts due and owed.

d. Comparisons of information from various sources within the company.

Answer: B