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:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for financial reporting.

ASPE

Accounting Standards for Private Enterprises, which provide simplified accounting guidelines for private companies in Canada.

Goodwill Impairment

A decrease in the value of goodwill on a company’s balance sheet, indicating that the value of a company’s acquired assets has fallen below the original valuation.

Revalued Assets

Assets that have been appraised again to reflect their current market value, rather than their original cost.