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Flashcards in BEC MCQ homework B 1.1 Deck (36):
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Monitoring activity

Periodically comparing and updating the mission vision and values is monitoring

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Control activity

Control activities are those typically those procedures that implement rather than monitor controls

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Residual risk

represents the risk that remains after the management has taken actions to mitigate events

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Positive events

Positive events represents opportunities

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Strategic objectives

Information technology objectives, Reporting objectives, Compliance objectives,

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Event Inventory

The technique characterized by the Development of listing of potential event common to a industry

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Facilitated workshop

A event bringing together knowledgably individuals

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Interviews

One to oe discussion with knowledgable staff

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Questionnaires

Surveys sent to staff

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COmpliance objective

Ethics related

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Reporting objective example

Establishing company wide uniform chart of accounts

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Operations objective

Conducting Focus

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Strategic

If it is broader in prospects it is releated

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Process flow analysis

Invloves analyzing flow charts as a basis for determining risk exposures

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Monitoring activity

Periodically comparing and updating the mission vision and values is monitoring

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Coso- Internal environment

ERM framework- Foundation elements such as organizational structure assignment of authority and responsibility Integrity and ethical values, risk management philosophy Commitment to competence and human resource standards and similar issues that influence the tone of the organization

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The control activities of the component of ERM framework

Includes key elements that releate to policies and procedures that ensure appropriate responses to identified risks not to the assignment of authority and responsiblity

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Information and communication component

That includes communication and caputure of information not to the assignment of responsiblity

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Monitoring component

of ERM includes key element that releate to the ongoing management activities or separate evaluations of ERM

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Audit committee member

Audit committee member may not accept compensation from the issuer for consulting or advisory services. Audit committee member may not be an affiliated person of the issuer

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COSO and Sarbenes OXley

1992 and 2002

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Residual risk

Residual risk is the risk after management responds to the risk

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Inherent risk

It is the risk which exists if the management take any actions

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ERM

Is associated with the identification of risk and balancing of those risks with profitability and growth objectives.

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The number of layers between the chief financial officer and financial reporting should not exceed

three

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four stages of change continum

Beginning with control baseline Change identification change management control validation update

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Control baseline

understand the Internal control system design and whether controls have been implemented to accomplish internal control objectives.

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Change identification

Considers the risk assessment component of IC and identifies changes in process or risk

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change management

Change manament contemplates the establishment of a new control baseline in response to changes that either or are implemented in response to revise needs.

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Control revalidation and update

Contemplates Control effectiveness, ongoing procedures routinely revalidate and create a continuous baseline while separate evolution provide periodic evaluation

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Fiduciary responsibility

directors

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agents

employees

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executives

officers

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Representatives

attorney

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Principles that protects directors from personal liability is

Business judgement rule

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Eight components of ERM framework

Internal environment, Event identification,Activities control, Setting objectives, control,Assesment of risk, Information and communication, Risk response and Monitoring