ch04 Student 1 COSO s Enterprise Risk Management Integrated Framework comprises all the following sections cid 10 except cid 10 A Brown s risk taxonomy B Objective setting C Event identification D Monitoring cid 10 In the COSO enterprise risk management framework an organization s overall tone relates most closely to cid 10 A Internal environment B Objective setting C Event identification D 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 cid 10 A Strategic B Reporting C Compliance D Risk management cid 10 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 cid 10 A Strategic B Reporting C Risk management D Control activity cid 10 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 cid 10 A Internal environment B Monitoring C Risk assessment D Risk response cid 10 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 cid 10 A Information and communication B Risk assessment C Risk response D Monitoring cid 10 2 5 6 7 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 cid 10 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 cid 10 Once the enterprise risk management framework was published the internal control framework became obsolete 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 cid 10 A 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 cid 10 9 Which of the following best pairs an element of the COSO enterprise risk management framework with cid 10 an example of that element cid 10 A Objective setting determining which elements of the COSO framework to use B Event identification identifying needed internal controls C Risk assessment annual management retreats focused on the ERM plan D Risk response diversifying risk by expanding internationally 10 Which of the following best pairs an element of the COSO enterprise risk management framework with cid 10 an example of that element cid 10 A Control activities developing a budget for the ERM plan B Information and communication annual management retreats focused on the ERM plan C Monitoring annual management retreats focused on the ERM plan D 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 cid 10 cid 10 12 Which of the following steps occurs first in the generalized model of business process management A Business process management B Enterprise risk management C Internal control D Expectancy theory cid 10 discussed in the text cid 10 A Analyze collected data B Collect process related data C Optimize the process D Select the process and define its boundaries cid 10 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 cid 10 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 cid 10 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 cid 10 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 cid 10 A I only B II only C Both I and II D Neither I nor II cid 10 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 cid 10 A I only B II only C Both I and II D Neither I nor II cid 10 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 statements is most true cid 10 A Creating a line graph helps fulfill the fourth step of the generalized BPM model discussed in the text Determining the average