The COSO Enterprise Risk Management Framework Comprises Eight Sections, One

question 16

Multiple Choice

The COSO enterprise risk management framework comprises eight sections, one of which is objective setting.COSO identified five types of objectives most organizations should consider in developing an ERM plan."Ensuring that the corporation fulfills the requirements of the Sarbanes-Oxley Act" is an example of a ___ objective.

• A)Strategic
• B)Reporting
• C)Compliance
• D)Risk management

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Definitions:

Return On Assets Ratio

The Return on Assets (ROA) ratio measures a company's ability to generate profit from its assets, indicating efficiency in using assets to produce earnings.

Profit Margin

A financial performance metric that measures the amount of net income earned with each dollar of sales generated by comparing net income to revenue.

Asset Turnover Ratios

Financial metrics that measure the efficiency of a company in using its assets to generate sales or revenue.