The COSO Enterprise Risk Management Integrated Framework Covers Five Components

question 14

Multiple Choice

The COSO enterprise risk management integrated framework covers five components of internal control.Which of the following is not a component?

• A)Governance and culture.
• B)Strategy and objective-setting.
• C)Performance.
• D)Risk management.

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Definitions:

Capital Budgeting

The process by which a business evaluates and selects long-term investments that are likely to yield the highest returns.

What-If Questions

Hypothetical queries used in analysis or decision-making to explore different outcomes based on varying scenarios.

Shareholder Wealth

Refers to the collective value of all shares held by investors in a corporation, ideally increasing as the company becomes more successful and its stock price rises.

Cash Flow Forecasts

Predictions of all the cash inflows and outflows expected to occur in a future period, helping businesses to ensure they maintain sufficient levels of cash.