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COSO IC Awareness: Pre-session Quiz

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.
Your Name
4 lines
2.
Q1. What is Internal Control?
a)

A formal document that explains how a process is to be carried out

b)

A management’s operating philosophy

c)

A set of procedures and actions put in place to control risks

d)

A tool used to measure the effectiveness of risk and compliance management

3.
Q2. Who is primarily responsible to determine and approve what internal controls should be designed and implemented for each business activity / process?
a)

ISO Auditors as part of the Total Quality Management (TQM) function

b)

Internal Audit Dept.

c)

Head of each Dept.

d)

Risk Management Dept.

4.

Q3. Recently, it was confirmed by the authority that around 25,000 of customers’ data of XX Corporation have been compromised and leaked.

Who from the list below is primarily accountable for this situation in the eyes of the authority and the shareholders of the Company?

a)

Internal Audit Dept.

b)

Head of IT Dept.

c)

Head of Compliance & Integrity

d)

CEO

5.
Q4. Internal control is used for which of the followings
a)

Drawing up the Job Description for the position of Customer Relationship Manager

b)

Ensuring accuracy, timeliness and integrity of month end closing financial statements by the Finance & Accounts Dept.

c)

Deciding on the right person for the right job/role

d)

Monitoring guide over the payroll processing 3rd party that the company has outsourced to

e)

All of the above

6.
Q5. COSO as a committee was formed for what purpose?
a)
Researching and publishing governance and sustainability related best practices
b)
Being the advisor to the US government and NYSE regulator on matters concerning good governance and control management for corporations listed on NYSE
c)
Suggesting an internal control model
d)
Monitoring the implementation of financial controls and disclosure across financial institutions in USA
7.
Q6. What is the goal of the COSO IC framework?
a)
An entity can achieve effective internal controls by applying the 17 prescribed principles
b)
To align and complement with the COSO ERM for effective business performance
c)
To deter erosion to shareholders' value in the corporation
d)
To enable effective and efficient discharge of duty and role by the external and internal auditors
8.
Q7. The 3 objectives of internal control as stated in COSO IC model are:
a)
Organizational - Compliance - Financial
b)
Fraud Management - Financial - Reporting
c)
Operating - Reporting - Compliance
d)
Governance - Compliance - Financial
9.
Q8. Limitations of an entity's internal control include the following EXCEPT:
a)
Cost & benefits of internal control adoption
b)
Management override
c)
Human error
d)
Collusion
10.
Q9. Culture and Operating Philosophy are part of an internal control model.
a)
True
b)
False
11.
Q10. "Performance measures are reviewed periodically for relevance and adequacy in relation to their potential risks and rewards?". Is performance measures part of internal control?
a)
Yes
b)
No