Among the five components of internal controls namely, control environment, risk assessment, information & communication, monitoring and control activities, it is the control environment that sets the tone for the organisation, hence, it is considered to be the foundation of the four other components. true or false

Among the five components of internal controls namely, control environment, risk assessment, information & communication, monitoring and control activities, it is the control environment that sets the tone for the organisation, hence, it is considered to be the foundation of the four other components. true or false

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor

Section: Chapter Questions

Problem 24CYBK

See similar textbooks

Similar questions

What are the components of internal control per COSO’s Internal Control—Integrated Framework? a. Organizational structure, management philosophy, planning, risk assessment, and control activities. b. Control environment, risk assessment, control activities, information and communication, and monitoring. c. Risk assessment, control structure, backup facilities, responsibility accounting, and natural laws. d. Legal environment of the firm, management philosophy, organizational structure, control activities, and control assessment.
List at least 5 control measures per principle of control activities (Establishment of Responsibility, Segregation of Duties, Documentation Procedures, Physical Controls, Independent Internal Verification, Human Resource Controls) which an organization may implement to establish internal control procedures.
List at least five control measures per control activity principle (Establishment of Responsibility, Segregation of Duties, Documentation Procedures, Physical Controls, Independent Internal Verification, and Human Resource Controls) that an organization may implement to establish internal control procedures.
one of the components of internal control is the control activities;which are the policies and procedures that help ensure that necessary actions are taken to address risks to the achievement of the entity objectives. what are the most important control activities (explain each of these control activities)?
Describe the four organization objective categories in the internal control framework. How are they related to the ERM components of internal control?
Identify each of the following as a (a) purpose of an internal control system, (b) principle of internalcontrol,or (c) limitation of internal control. Uphold company policies
Internal controls are perhaps the most important tools for managing operational risk. What are internal controls? Give three examples of internal controls and explain how each control is used to minimize operational risk.
COSO lists five components of internal control: control environment, risk assessment, control activities, information and communication, and monitoring. Indicate the COSO component that matches with each of the following internal control activities. a. Independent review of controls c. Reporting of control effectiveness b. Executives’ strong ethics d. Analyses of fraud risk factors
All of the following are components of internal control except Monitoring The information and communication system. Risk assessment process Management reports
Which among the following is not a principle relating to control activities? a. Management designs control activities to achieve its objectives. b. Management designs its information systems and related control activities to achieve its objectives and respond to risks. c. External auditor implements the control activities to achieve its objectives and respond to risks d. The agency implements control activities through policies and procedures.
1. What are objectives? What three categories of objectives are set forth in the COSO framework? 2. What does the control environment comprise? 3. What are control activities? What types of control activities are present in a well-designed system of internal controls? 4. When are monitoring activities most effective? Who performs monitoring activities? What distinguishes separate evaluations from ongoing monitoring activities? 5. How does internal auditors' perspective of internal control differ from management's perspective? 6. How does COSO define risk? How does ISO define risk? 7. What are the five COSO ERM components? 8. How does COSO define risk appetite? 9. What are some ERM assurance activities the internal audit function may perform? What are some ERM consulting activities the internal audit function may perform if appropriate safeguards are implemented? What ERM activities should the internal audit function not perform? 10. What are COSO's five categories of risk…
Describe in detail with relevant examples about the limitations of internal control and Explain about five components of internal control