What does COSO stand for?
Committee of Sponsoring Organizations of the Treadway Commission
What is the definition of control in the context of COSO?
Procedure to make sure you achieve your objective
What are the five components of COSO?
- Control environment
- Risk assessment
- Communication and information
- Control activities
- Internal control monitoring
What is the purpose of the control environment component in COSO?
Tone at the top
What are the key actions in the risk assessment component of COSO?
- Identify risks
- How all level of risk will be managed
- Cause of creation of controls
What is the role of communication and information in COSO?
Distribution of competent info from management
What types of internal control activities are included in COSO?
- Verification
- Reconciliation
- Authorization and approval
- Physical controls
- Controls over standing data
- Supervisory controls
What is the purpose of control activities in COSO?
To mitigate risk and achieve objective
What is the focus of internal control monitoring in COSO?
Make sure all the COSO elements work and come together
What are the three types of internal control components in COSO?
- Operations Internal controls
- Compliance internal control
- Financial reporting internal control
What additional components are part of COSO?
- Business Unit Activities
- Division & Function Controls
- Business Entry-level Controls
True or False: 40% of frauds are discovered from tips.
True
True or False? Communication and information can come from both internal and external sources?
True
