According to the COSO Enterprise Risk Management (ERM) framework (2017), which component addresses the organization's core values, ethical values, and the operating structure?

Answer options:

Governance and Culture

Strategy and Objective-Setting

Performance

Information, Communication, and Reporting

How to approach this question

Recall the 5 components of COSO ERM: Governance & Culture, Strategy & Objective-Setting, Performance, Review & Revision, Information/Communication/Reporting.

Full Answer

A.Governance and Culture✓ Correct

The 'Governance and Culture' component of the COSO ERM framework encompasses the tone of the organization, ethical values, desired culture, and the oversight responsibilities of the board.

Common mistakes

Confusing with the COSO Internal Control framework components (Control Environment).

Question 12 All questions Question 14

Practice the full CPA BAR Practice Exam 4

50 questions · hints · full answers · grading

More questions from this exam

Q01Orion Corp. is analyzing its working capital efficiency. For the current year, Orion reported the...Hard Q02A company is analyzing its gross margin variance. The budgeted data for the quarter indicated sal...Medium Q03TechSolutions Inc. reports the following financial data:<br/>- Net Income: $5,000,000<br/>- Inter...Hard Q04Manufacturing Corp. uses Activity-Based Costing (ABC). The company has identified two cost pools:...Medium Q05During the current month, a company purchased 20,000 pounds of raw material for $42,000. The stan...Medium

View all 50 questions →