Becker BEC 1 2022 QUETIONS AND ANSWERS ALL CORRECT

Becker BEC 1 2022 Components of Internal Control Correct Answer: "CRIME" Control Enviroment - Tone at the top Risk Assessment - FS misstated/Fraud Info & Communication - "FACT" Monitoring - Efficiencies of IC, report deficiciences Existing Control Activities - P&P to mitigate risk Objectives of COSO Framework Correct Answer: "ORC" Operations - effectiveness/efficiency of operations and assets are adequatley safeguarded Reporting - "focus of COSO" - reliability, timeliness, and transparency of external and internal financial reporting Compliance - ensure the entity is adhering to laws and regulations Objectives of ERM Framework Correct Answer: "SORC" Strategic Operations - effectiveness/efficiency of operations and assets are adequatley safeguarded Reporting - "focus of COSO" - reliability, timeliness, and transparency of external and internal financial reporting Compliance - ensure the entity is adhering to laws and regulations Principles of Risk Assessment Correct Answer: "EAR" Event Identification Assess Risk Respond to Risk Principles of Monitoring Controls Correct Answer: Ongoing and/or separate evaluations Communication of deficiencies Principles of Information and Communication Correct Answer: "FACT" Fair Accurate Complete Timely Principles of Existing Control Activities Correct Answer: Select/develop control activities Select/develop technical controls Deploy through P&P Components and Principles of COSO Framework Correct Answer: All components and principles must be both present (included in design and implemented) and functioning (operating as designed). This reduces, to an acceptable level, the risk that the entitiy will not achieve it's objectives. Principles of Control Enviroment Correct Answer: "EBOCA" Commitment to Ethics and Integrity Board Independence and Oversight Organizational Structure Commitment to Competence Accountability Components of ERM Correct Answer: "IS EAR AIM" Internal Enviroment - EBOCAHR Setting Objectives - SORC Event Identification Assessing Risk Responding to Risk Existing Control Activities Information and Communication