COSO QUIZ WITH EXPLANATION ACTUAL 2025/2026 CORRECTLY ANSWERED

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COSO QUIZ WITH EXPLANATION ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS [ 1 ] The COSO framework treats internal control as a process designed to provide reasonable assurance regarding the achievement of objectives related to A. Reliability of financial reporting. B. Effectiveness and efficiency of operations. C. Compliance with applicable laws and regulations. D. All of the answers are correct. - Answer -D (*Correct Answer* The COSO framework treats internal control as a process designed to provide reasonable assurance regarding the achievement of objectives related to reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations.) [ 2 ] Which of the following statements is correct regarding corporate compensation systems and related bonuses? 1. A bonus system should be considered part of the control environment of an organization and should be considered in formulating a report on internal control. 2. Compensation systems are not part of an organization's control system and should not be reported as such. 3. An audit of an organization's compensation system should be performed independently of an audit of the control system over other functions that impact corporate bonuses. A. 1 only. B. 2 only. C. 3 only. D. 2 and 3 only. - Answer -A (*Correct Answer* The control environment includes, among other things, the element of human resource policies and practices. Thus, hiring, orientation, training, evaluation, counseling, promotion, compensation, and remedial actions must be considered by management.) Need assistance on Online classes, Exams & Assignments? Reach out for instant help!! Full Course Assistance, Plagiarism-free Essay Writing, Research Paper, Dissertation, Discussion Posts, etc…. Confidential & Secure services. Tutors are available for all subjects! Email now at: tutorjean01@gmail.com [ 3 ] An organization's directors, management, external auditors, and internal auditors all play important roles in creating a proper control environment. Senior management is primarily responsible for A. Establishing a proper organizational culture and specifying a system of internal control. B. Designing and operating a control system that provides reasonable assurance that established objectives and goals will be achieved. C. Ensuring that external and internal auditors adequately monitor the control environment. D. Implementing and monitoring controls designed by the board of directors. - Answer -A (*Correct Answer* Senior management is primarily responsible for establishing a proper organizational culture and specifying a system of internal control.) [ 4 ] Internal control can provide only reasonable assurance that the organization's objectives will be met efficiently and effectively. One factor limiting the likelihood of achieving those objectives is that A. The internal auditor's primary responsibility is the detection of fraud. B. The board is active and independent. C. The cost of internal control should not exceed its benefits. D. Management monitors performance. - Answer -C (*Correct Answer* A limiting factor is that the cost of internal control should not exceed its expected benefits. Thus, the potential loss associated with any exposure or risk is weighed against the cost to control it. Although the costbenefit relationship is a primary criterion that should be considered in designing and implementing internal control, the precise measurement of costs and benefits usually is not possible.) [ 5 ] Which of the following is the control component that reflects the attitude and actions of the board and management regarding the significance of control within the organization? A. Risk assessment. B. Control activities. C. Control environment. D. Monitoring. - Answer -C (*Correct Answer* According to the COSO model for internal control, the control environment reflects the attitude and actions of the board and management regarding the significance of control within the organization.) Need assistance on Online classes, Exams & Assignments? Reach out for instant help!! Full Course Assistance, Plagiarism-free Essay Writing, Research Paper, Dissertation, Discussion Posts, etc…. Confidential & Secure services. Tutors are available for all subjects! Email now at: tutorjean01@gmail.com