ch04Student: ___________________________________________________________________________1. COSO’s Enterprise Risk Management—Integrated Framework comprises all the following sections except:  A. Brown’s risk taxonomyB. Objective settingC. Event identificationD. Monitoring 2. In the COSO enterprise risk management framework, an organization’s overall tone relates most closely to:  A. Internal environmentB. Objective settingC. Event identificationD. Monitoring 3. The COSO enterprise risk management framework comprises eight sections, one of which is objective setting. COSO identified five types of objectives most organizations should consider in developing an ERM plan. “Ensuring that the corporation fulfills the requirements of the Sarbanes-Oxley Act” is an example of a ___ objective.  A. StrategicB. ReportingC. ComplianceD. Risk management 4. The COSO enterprise risk management framework comprises eight sections, one of which is objective setting. COSO identified five types of objectives most organizations should consider in developing an ERM plan. “Completing SEC filings within thirty days of the fiscal year end” is an example of a ___ objective.  A. StrategicB. ReportingC. Risk managementD. Control activity 5. In a conversation about risk management, Miguel and Rafaela were trying to decide whether to recommend their company invest some cash in short-term securities to increase the cash available for operations. Which element of the COSO framework is most related to their recommendation?  A. Internal environmentB. MonitoringC. Risk assessmentD. Risk response 6. In a conversation about risk management, Miguel and Rafaela produced a ranked list of their company’s risk exposures. The ranked list is most closely related to which element of the COSO framework?  A. Information and communicationB. Risk assessmentC. Risk responseD. Monitoring7. 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. The internal control framework is more useful than the enterprise risk management framework.B. The enterprise risk management framework is more useful than the internal control framework.C. Management attitudes are an element of both frameworks.D. Both frameworks are required by the SEC. 8. 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. If a manager feels an element of one of the frameworks is unimportant, it can be omitted.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. 9. Which of the following best pairs an element of the COSO enterprise risk management framework with an example of that element?  A. Objective setting, determining which elements of the COSO framework to useB. Event identification, identifying needed internal controlsC. Risk assessment, annual management retreats focused on the ERM planD. Risk response, diversifying risk by expanding internationally 10. Which of the following best pairs an element of the COSO enterprise risk management framework with an example of that element?  A. Control activities, developing a budget for the ERM planB. Information and communication, annual management retreats focused on the ERM planC. Monitoring, annual management retreats focused on the ERM planD. Internal environment, posting SEC filings on the company web site 11. A method of efficiently aligning an organization with the wants and needs of clients is a definition of:  A. Business process managementB. Enterprise risk managementC. Internal controlD. Expectancy theory 12. Which of the following steps occurs first in the generalized model of business process management discussed in the text?  A. Analyze collected data.B. Collect process-related data.C. Optimize the process.D. Select the process and define its boundaries. 13. Laurie and Milton were developing a business process management plan for their organization. Which of the following actions should they take first, based on the generalized model of BPM discussed in the text?  A. Ask co-workers how the purchasing process can be optimized.B. Choose an activity to study.C. Determine what data their organization has available.D. Get a budget from management for developing the BPM plan. 14. Laurie and Milton were developing a business process management plan for their organization. After deciding to focus on the process of purchasing fixed assets, they should:  A. Determine how the fixed asset purchasing process currently works.B. Estimate the remaining useful life for each fixed asset in the company.C. Look up the definition of “fixed assets” on the FASB web site.D. Make the improvements they believe are necessary.15. Laurie and Milton are concerned about the risks created by inefficiency in the company’s current fixed asset purchasing process. They could address their concern by developing: (i) an enterprise risk management plan, (ii) a business process management plan.  A. I onlyB. II onlyC. Both I and IID. Neither I nor II 16. One of the steps in the generalized model of business process management discussed in the text focuses on collecting process-related data. If Laurie and Milton are concerned about the risks created by inefficiency in the company’s current fixed asset purchasing process, they could collect data related to: (i) the average length of time between an order for a fixed asset and its delivery, (ii) the costs incurred in the fixed asset purchasing process.  A. I onlyB. II onlyC. Both I and IID. Neither I nor II 17. Gelton was leading a team of three co-workers focused on improving their company’s process for hiring new employees. They had read the company procedures manual describing the current process, then interviewed newly-hired workers about their experiences. They used the principles of activity-based costing to determine the average cost of hiring a new employee, then created a line graph tracing the average cost over the last twelve months. Which of the following