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

question 74

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)In each framework, one or more elements can be omitted without risk.
• 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:

Compounded Semi-annually

A method of calculating interest where it is added to the principal amount twice a year, leading to interest on interest.

Monthly Payment

The amount paid every month over the course of a loan or mortgage to cover both principal and interest.

Conditional Sale Contract

A type of contract in which the sale of an asset or property is contingent upon certain conditions being met, often used in real estate and high-value purchases.

Ordinary Annuity

A financial product where regular payments are received or paid at the end of each period, such as monthly or annually.