Enterprise risk managementA.Guarantees achievement of organizational objectives.B.Requires establishment of risk and control activities by internal auditors.C.Involves the identification of events with negative impacts on organizational objectives.D.Includes selection of the best risk response for the organization.

Enterprise risk management :- It provides framework for risk management. It Involves the…

Answered: Enterprise risk management A.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Compare and discuss the impact of the business environment on the internal audit risk assessment
The exercise of integrating a company’s functional strategies helps the team explicitly recognize which risks are on its immediate critical path and devise near-term plans for mitigating these risks in sequence True False
Is an organization’s internal audit function part of its system of internal controls? If your answer is yes, explain how the internal audit function can evaluate the design adequacy and operating effectiveness of internal controls and at the same time remain independent of the organization’s system of internal controls. If your answer is no, explain the internal audit function’s role relative to the organization’s system of internal controls.
The audit risk model includes the four risks listed below. Match the type of risk with the related definition.A. Detection riskB. Control riskC. Inherent riskD. Audit risk___ 1. The probability that an auditor will give an inappropriate opinion on financial statements.___ 2. The probability that audit procedures will fail to produce evidence of material misstatements.___ 3. The probability that the client's internal control policies and procedures will fail to detect material misstatements if they have entered the accounting system.___ 4. The probability that material misstatements have occurred in transactions entering the accounting system.
Who has primary responsibility for overseeing the establishment, implementation, and evaluation of risk management and controls? I Operating managers. B) Internal auditors. External auditors. Senior management
2. Standards requires auditors to obtain sufficient knowledge of the organization’s risk assessment procedures to understand how management identifies, prioritizes and manages financial reporting risk. List five circumstances that can cause risks to arise or change. Please answwer this thank youuuuu:)
The Committee of Sponsoring Organizations of the Treadway Commission's (COSO's) Internal Control—Integrated Framework provides a model for organizations to design and implement an entity-wide system of controls. Which of the following BEST (select one) describes the purpose of the COSO model? a) To provide a tool to perform risk assessments b) To motivate employees to maintain a culture of compliance c) To provide auditors with a detailed work pogram to perform audits d) To provide a model to help organizations better design, implement, and assess internal contreol thereby supporting governance objectives
Internal Controls should be created with focus on which aspect of the organization? All of the Above Operational Reporting Financial Reporting Compliance Reporting
Aligning the to the organization's strategic objectives links the entire audit process to business objectives and enterprise-wide risks. To effectively allocate audit resources, audit departments should develop a risk-based that takes into consideration the full audit universe and the risks associated with each audit universe item, including any departmental resource constraints. a) audit department; audit strategy b) risk assessment; audit plan c) audit universe; audit approach d) audit charter; audit budget
When testing a control activity’s operating effectiveness, procedures the auditor performs totest operating effectiveness would likely includea. Inquiry of appropriate personnel.b. Reading over the company’s code of conduct.c. Reperformance of the control activity.d. Both a and c are correct.

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