ExpertEasy1 markMultiple Choice
CPA · Question 13 · Area I: Business Analysis
According to the COSO Enterprise Risk Management (ERM) framework (2017), which component addresses the organization's core values, ethical values, and the operating structure?
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:
A.
Governance and Culture
B.
Strategy and Objective-Setting
C.
Performance
D.
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).
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