Mnemonics

Question 1

COSO Internal Control

Answer 1

Control Activities

Risk Assessment

Information and communication

Monitoring

Control Environment

Question 2

What are the 4 categories that the ERM framewok defines as enterprise objectives? SORC

Answer 2

Strategic

Operations

Reporting

Compliance

Question 3

Control Environment Componenets: PHRASED

Answer 3

Philosophy and operating style of management

Human resources

Reporting (financial) competencies

Authority and responsibility

Structure (organizational)

Ethical Values (and integrity)

Directors

Question 4

ERM inclues components that are similar to the componenets of the Framework but are broader in scope: IS EAR AIM

Answer 4

Internal evironment

Setting objectives

Event identification

Assessment of risk

Risk response

Activities

Information and communication

Monitoring

Question 5

What makes up the Internal Environment componenet of ERM? PHRASED C

Answer 5

Risk Management Philosophy

Human Resources standards

Risk Appetite

Assigment of Authority and responsibility

Organizational Structure

Integrity and ethical values

Board of directors

Commitment of competence

Question 6

What are the 4 componenet of Balanced Scorecard?

Answer 6

Financial

Business Process

Customer Satisfaction, market share

Learning and growth

Question 7

Cost accounting systems are designed to meet the goal of measuring cost objects or objectives. The most frequent objectives include? PIE

Answer 7

Product Costing

Income determination

Efficiency measurements

Question 8

What are conforming and nonconforming qualities? A PIE

Answer 8

Conforming

• Appraisal
• Prevention

Non conforming

• Internal Failure
• External Failure

Question 9

Calculating GDP using the expenditure approach: GICE

Answer 9

Government purchases of goods and services

Gross Private Domestic Investment

Personal Consumption expenditures

Net exports (exports minus imports)

Question 10

Calculating the GDP using the income approach: I PIRATED

Answer 10

Income of proprietors

Profits of corporations

Interest

Rental Income

Adjustment for net foreign income and misc items

Taxes

Employee Compensation

Depreciation

Question 11

Factors that shift demand curve: WRITEN

Answer 11

Change in Wealth

Changes in the price of Related Goods

Changes in Consumer Income

Changes in Consumer Tastes or preference

Changes in Consumer Expectations

Chagnes in the Number of Buyers served by the market

Question 12

What are the different cost units?

Answer 12

Investment

Profit

Revenue

Cost

Question 13

What are the componenets of Strategy? SR ORC

Answer 13

Strategic Objective

Related Objectives

Operations Objectives

Reporting Objectives

Compiance Objectives

Question 14

The seven distinct info criteria, COBIT describes as the business requiremetns for info that sitisfy business objectives: ICE RACE

Answer 14

Integrity

Confidentiality

Efficiency

Reliability

Availability

Compliance

Effectiveness

Question 15

What are the steps in the systems development life cycle: A DITTO

Answer 15

Analysis

Design

Implementation and conversion

Training

Testing

Operations and Maintenance

Question 16

Leftward shifts in the demand curve will cause supply (national output) to fall at equilibrium. Changes in factors that cuase the demand curve to shift left: TWICE G

Answer 16

Taxes

Wealth decreases

Interest increases

Consumer Confidence decreases

Exchange rate increases

Government spending decreases