Definition
Responsibilities
COSO Framework
Risk Assessment
Sustaining and Maintaining
100
When an organization protects these, it protects its ability to meet financial obligations and gain value.
What are assets?
100
Maintaining internal controls is the responsibility of this organizational leadership group.
What is management?
100
This component of the COSO framework sets the organization’s tone and establishes responsibility for oversight and defines the values, behaviors, and understanding of risk necessary to maintain internal controls.
What is Control Environment (or Governance Culture)?
100
This is the process required to identify and prioritize internal and external events and circumstances that may occur and adversely affect an entity's ability to initiate, record, process, and report financial data consistent with the assertions of management embodied in the financial statements.
What is Risk Assessment?
100
This is the use of effective internal controls to move beyond compliance to achieve greater operating efficiency. It runs parallel to the mandates of the Sarbanes-Oxley life cycle.
What is continuous improvement?
200
Internal controls are primarily used to verify the reliability of this kind of data.
What is accounting data?
200
Accepting responsibility for and evaluating the effectiveness of a company's internal controls is the duty of this group.
What is management?
200
It's the second component of the COSO framework: planning stage for identifying, assessing, and responding to risk.
What is Risk Assessment?
200
The first step in a risk assessment, this step identifies what which internal control processes will be evaluated, as well as the approach, timeline, and resources to be utilized.
What is planning the scope?
200
This Chairman of the U.S. Securities and Exchange Commission said "...if companies view the laws as opportunities -- opportunities to improve internal controls, improve the performance of the board, and improve their public reporting -- they will ultimately be better run, more transparent, and therefore more attractive to investors."
Who is William H. Donaldson?
300
Promoting operational efficiency is one of the goals of this regulatory structure.
What is Internal Controls?
300
Management's assessment and evaluation of it's internal controls policies and procedures must be supported by this key element.
What is direct evidence?
300
The component of the COSO framework that identifies the policies and procedures that will help ensure management directives are carried out.
What is Control Activities?
300
This element of risk assessment provides evidence of management's assertions about internal controls. It often includes items such as policy manuals, flowcharts, job descriptions, documents, and forms.
What is document control?
300
Moving from compliance to realizing value is achieved in the five steps of this life cycle? 1. Initial compliance 2. Readiness assessment 3. Ongoing monitoring and testing 4. Ongoing documentation updates and remediation 5. Process improvement
What is the Sarbanes-Oxley life cycle?
400
Another purpose of internal controls is to monitor adherence to these kinds of prescribed policies.
What are managerial policies?
400
Management groups use this third-party service to evaluate and report adherence to an organization's own internal control policies.
What is an auditor?
400
The component of the COSO framework where information is identified, captured, and communicated in a form and time frame that supports all other control components.
What is Information and Communication?
400
At this numerical step, management looks at the design of its internal control methods relevant to its financial reporting objectives, as well as the operating effectiveness and consistency of those methods.
What is Step 3?
400
The ultimate goal of maintaining and improving internal controls is to maintain the integrity of reporting in this area of organizations.
What is financial management?
500
Internal controls are methods used to ensure quality in a variety of departments, but this area of an organization is the main focus of regulatory internal controls.
What is the financial department?
500
President George W. Bush signed this legislation into law to restore public confidence in financial reporting. It's this law that outlines the roles and responsibilities for internal controls in publicly traded companies.
What is the Sarbanes-Oxley Act?
500
It's the last, but not least, component of the COSO framework: a process that assesses the quality of the system's performance over time.
What is Monitoring?
500
This is the name given to the situation where the design or operation of a control does not allow management or employees to prevent or detect misstatements on a timely basis.
What is a deficiency?
500
A constant and rigorous review program requires this cultural behavior to maintain a process-driven mentality.
What is discipline?
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