Which component of the COSO ERM Framework addresses the organization's 'Tone at the Top'?

Answer options:

Governance and Culture

Strategy and Objective-Setting

Performance

Review and Revision

How to approach this question

Associate 'Tone at the Top' with Culture/Governance.

Full Answer

A.Governance and Culture✓ Correct

Governance and Culture sets the organization's tone, reinforcing the importance of, and establishing oversight responsibilities for, enterprise risk management.

Common mistakes

Confusing it with Control Environment (Internal Control framework) - though similar, in ERM 2017 it's Governance and Culture.

Question 46 All questions Question 48

Practice the full CPA BAR Practice Exam

50 questions · hints · full answers · grading

More questions from this exam

Q01TechGlobal Inc. is evaluating the performance of its European division using Economic Value Added...Hard Q02A manufacturing company is analyzing its production process to identify bottlenecks. The process ...Medium Q03Management is using the COSO Enterprise Risk Management (ERM) framework to address a newly identi...Medium Q04RetailCo is evaluating two strategic initiatives using a Balanced Scorecard approach. <br/>Initia...Medium Q05A company is deciding between two mutually exclusive projects. <br/>Project X: NPV = $50,000, IRR...Medium

View all 50 questions →