What are the 5 components of the COSO framework? A. Risk assessment, control environment, control activities, information and communication, monitoring B. Control environment, risk assessment, control activities, information and communication, monitoring. C. Control activities, monitoring, information and communication, control environment monitoring D. Control activities, control environment, risk assessment, monitoring, information and communication
Please answer all 3 subparts.
Question 1
(i) What are the 5 components of the COSO framework?
A. Risk assessment, control environment, control activities, information and communication, monitoring
B. Control environment, risk assessment, control activities, information and communication, monitoring.
C. Control activities, monitoring, information and communication, control environment monitoring
D. Control activities, control environment, risk assessment, monitoring, information and communication
(ii) An opinion which is given by the auditor when the financial statements give a true and fair view except for a particular matter, which the auditor explains is called:
A. An adverse opinion
B. An unmodified opinion
C. A qualified opinion
D. A disclaimer opinion
(iii) Which of the following is NOT a reason why linking reward to performance may not solve remuneration problems?
A. Unsuitable measures of performance may be selected
B. Many performance measures are based on the short term results
C. Remuneration systems are normally designed to provide the reward after the performance has been made.
D. Not enough disclosure is provided in annual reports with respect to directors remuneration
(iv) A control environment :
A. Describes the awareness of (and attitude to) internal controls in the organisation.
B. Describes the system or procedures for identifying the risks facing the company
C. Describes how controls should be devised and implemented to eliminate, reduce or control risks
D. Describes the system of information provision and communication within the organisation
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