Question

COSO's Internal Control Framework (internal control system) should include a good:

control _______
a) Environment
b) Procedure
c) Policy
d) Strategy
______ _______ process
a) Risk assessment
b) Employee training
c) Inventory management
d) Marketing strategy
control _______
a) Monitoring
b) Reporting
c) Budgeting
d) Auditing
________ and _______ system (including the _______ system)
a) Financial and accounting, payroll
b) Communication and information, reporting
c) Security and surveillance, alarm
d) Feedback and control, management
process of monitoring _______
a) Employees
b) Systems
c) Controls
d) Risks

Answer 1

COSO's Internal Control Framework includes a control environment, risk assessment process,

control activities, information and communication systems, and a monitoring process to ensure an effective internal control system.

Step-by-step explanation:

COSO's Internal Control Framework is designed to help organizations establish and maintain an effective internal control system. An internal control system should include:

• A good control environment that sets the tone at the top and provides discipline and structure.
• An effective risk assessment process that identifies and analyzes risks to achieving the organization's objectives, and determines how such risks should be managed.
• Control activities that are the policies and procedures that help ensure management's directives are carried out.
• Adequate information and communication systems, including the reporting system, to support the other components of internal control.
• Monitoring of controls to assess the quality of the internal control system's performance over time.

In summary, the Internal Control Framework should include a good control environment, risk assessment process, control activities, and information and communication systems, as well as a monitoring process that focuses on the persistence of the controls' effectiveness.