A. The COSO Enterprise Risk Management Framework:

1. helps management set risk management policies that, if enforced, guarantee achievement of corporate objectives.

2. stresses that risk management is the sole responsibility of top management.

3.helps management manage uncertainty, and its associated risk and opportunity, so they can create and maintain value.

4. stresses that effective risk management is comprised of just three interrelated components: internal environment, risk assessment, and control activities.

B. Which of the following attributes would most likely be a primary key in one of the tables of a companys database:

Supplier invoice number

Check date

Purchase order number

Customer check number

Quantity ordered

C. Which of the following functions is not included in the typical expenditure cycle involving goods?

Processing a credit memo

Posting to the accounts payable subsidiary ledger

Ascertaining the validity of payment obligations

Placing an order for goods or services

Disbursing payments to the vendors

D. Which of the following is an applicable control procedure to reduce the threat that a company will have shipping errors?

Separation of shipping and billing function

Reconciliation of the inventory subsidiary ledger with the general ledger

Sending monthly statements to the customer

Credit approval by the credit manager

Reconciliation of sales order with the picking list and packing slip

E. Which of the following document best ensures that the proper quantities are reflected on supplier invoices?

Remittance advices

Receiving report

Packing slips

Purchase Order

F. The audit committee of the Board of Directors

provides an independent review of the actions of managers.

the audit committee does all of these selections.

is usually chaired by the CFO.

conducts testing of controls on behalf of the external auditor.