Introduction to COSO and the COSO Cube

Question 1

Define “information and communications.” (according to the COSO internal control framework)

Answer 1

One of five components of internal control. Enable an organization’s personnel to identify, process, and exchange the information needed to manage and control operations.

Question 2

Define “risk assessment.” (according to the COSO internal control framework)

Answer 2

One of five components of internal control. The process of identifying, analyzing, and managing the risks related to achieving the organization’s objectives.

Question 3

Define “control activities.” (according to the COSO internal control framework)

Answer 3

One of five components of internal control. Related to the policies and procedures that ensure that organizational actions address key risks related to the achievement of management’s objective.

Question 4

Define “control environment.” (according to the COSO internal control framework)

Answer 4

One of five components of internal control. Encompasses management’s philosophy towards controls, organization structure, system of authority and responsibility, personnel foundation of any system of internal control.

Question 5

Define “monitoring.” (according to the COSO internal control framework)

Answer 5

One of five components of internal control. This component ensures the ongoing reliability of information and control processes by monitoring and testing the control system.