FREE BEC Corporate Governance Questions and Answers

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According to the COSO ERM framework, which of the following components would not belong to Review and Revision?

Correct! Wrong!

Evaluate alternative strategy is a component of Strategy and Objective Setting under the COSO ERM framework.

The Committee on Sponsoring Organizations prepared the Internal Control-Integrated Framework:

Correct! Wrong!

This was the primary focus of the Internal Control-Integrated Framework established in 1992.

According to COSO's ERM framework, which of the following is an essential element of the governance and culture of an entity?

Correct! Wrong!

A commitment to core values is one of the principles underlying governance and culture.

A company owns and operates multiple businesses in the Caribbean. Management has identified interruptions in normal operations as a potential risk resulting from storm damage caused by hurricanes.
Recognizing this, the company decides to treat the potential damage as part of its business model. The company's response to this potential risk is known as:

Correct! Wrong!

Self-insurance or tolerating the full exposure to a risk is acceptance of that risk.

An entity successfully launching a profitable new product line represents:

Correct! Wrong!

Successfully launching a profitable new product is the best example of value creation.

Governance and culture is a component of COSO's ERM framework. It is supported by all of the following principles except:

Correct! Wrong!

Analyzing a business context is the core principle of strategy and objective setting within the COSO ERM framework.

The core values of an entity most closely relate to its:

Correct! Wrong!

The word most closely related to "core values" will always be culture as "tone at the top" is to corporate governance.

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