Bec ch 1

Question 1

What are the 5 components of Coso?

Answer 1

1. Control environment
2. Risk assessment
3. Control activities
4. Information and communication
5. Monitoring activities

Question 2

What is enterprise risk management?

Answer 2

It is a process designed to identify potential events that may affect the entity and to manage risk to to be within its appetite and to provide reasonable assurance regarding the achievement of entity objectives

Question 3

What are the 8 inter related components of erp?

Answer 3

1. Internal environment
2. Objective setting
   3 event identification
   4 risk assessment
   5 risk response
   6 control activities
   7 information and communication
   8 monitoring

Question 4

What do the articles of incorporation include? And who is it filed with

Answer 4

1 proposed name of corp and address
2 purpose of corp
3. Powers of corp
4 name of registered agent of corp
5 name and address of each incorporator
6 number of authorized shares of stock and types 

Filed with Secretary of State

Question 5

What’s a poison pill?

Answer 5

To prevent corporate take over shareholders can purchase additional shares at a discount if someone attempts to acquire a controlling interest in the corporation

Question 6

Who has the power to amend the articles of incorporation

Answer 6

Shareholders

Question 7

Who declares dividends ?

Answer 7

Bod

Question 8

What are the three objectives of internal control?

Answer 8

1. Reliability of reporting
2. Efficiency and effectiveness of operations
3. Compliance with applicable laws and regulations