COSO Has Published Integrated Frameworks for Both Internal Control and for Enterprise

question 14

Multiple Choice

COSO has published integrated frameworks for both internal control and for enterprise risk management. Which of the following statements about the frameworks is most true?

• A)Once the enterprise risk management framework was published, the internal control framework became obsolete.
• B)If a manager feels an element of one of the frameworks is unimportant, it can be omitted.
• C)"Risk assessment" refers to similar processes in both frameworks.
• D)A "risk response" in the ERM framework could be considered a "control activity" in the internal control framework.

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Definitions:

Absorption

Absorption refers to the process of fully engaging or immersing oneself in an activity, often leading to increased focus and productivity.

All-Channels Information

Systems or processes that allow information to be freely communicated within every part of an organization, without barriers.

Knowledge Management

The process of capturing, distributing, and effectively using knowledge within an organization.

Low Power Distance

A cultural dimension where individuals in a society or organization prefer relatively equal power distribution and flatter hierarchies.