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What is the primary purpose of the COSO framework as described in the content?

  • To provide tools for financial forecasting.
  • To enhance employee training programs.
  • To improve organizational performance and governance. (correct)
  • To increase profitability through marketing strategies.

    • Which organization is specifically mentioned as a part of the COSO Board?

  • World Health Organization.
  • The European Central Bank.
  • Financial Executives International. (correct)
  • International Accounting Standards Board.

    • Which of the following best describes a limitation mentioned regarding the information presented?

  • It requires professional consultation for specific situations. (correct)
  • It is based on stable, unchanging authorities.
  • It is meant for immediate organizational application.
  • It can be used as an ultimate decision-making tool.

    • Who are the authors of this compliance risk management paper?

    <p>The Society of Corporate Compliance and Ethics &amp; Health Care Compliance Association.</p> Signup and view all the answers

    What is one of the goals of the Committee of Sponsoring Organizations of the Treadway Commission?

    <p>To provide comprehensive frameworks and guidance.</p> Signup and view all the answers

    What is the primary responsibility of the CCO?

    <p>Oversee the compliance function and ethics program</p> Signup and view all the answers

    Which of the following best describes a compliance risk?

    <p>The potential for violation of laws or policies</p> Signup and view all the answers

    What does the term 'board' refer to in this context?

    <p>The board of directors or an oversight committee</p> Signup and view all the answers

    Which structure is essential for proper board oversight according to the governance and culture component?

    <p>Open and direct communication with the CCO</p> Signup and view all the answers

    Which organization is referred to by the abbreviation DOJ?

    <p>Department of Justice</p> Signup and view all the answers

    What is the main function of a compliance committee?

    <p>To advise, inform, and partner with the CCO</p> Signup and view all the answers

    Which of the following is NOT one of the five principles of the COSO framework relevant to governance?

    <p>Develops a marketing strategy</p> Signup and view all the answers

    What does the acronym C&E program stand for?

    <p>Compliance and ethics program</p> Signup and view all the answers

    What is an important factor in assessing the severity of compliance risk?

    <p>Likelihood and impact of the risk</p> Signup and view all the answers

    Which of the following is NOT a characteristic of the compliance risk identification process?

    <p>Ignore information from hotlines</p> Signup and view all the answers

    Which compliance risk is likely to be included in an entity-level risk inventory?

    <p>Regulatory change</p> Signup and view all the answers

    What commonly complicates the assessment of compliance risk severity?

    <p>Assuming controls are in place during assessments</p> Signup and view all the answers

    When identifying compliance risks, which factor should be considered regarding the use of third parties?

    <p>Risks associated with their noncompliance</p> Signup and view all the answers

    What does 'likelihood' refer to in the context of compliance risk assessment?

    <p>The probability of specific noncompliance occurring</p> Signup and view all the answers

    What might be a source of information for identifying compliance risks?

    <p>Hotline reports and investigations</p> Signup and view all the answers

    In compliance risk assessment, why is considering 'no control' scenarios challenging?

    <p>People struggle to envision a lack of controls</p> Signup and view all the answers

    What is the appropriate response when wrongdoing is confirmed through the investigative process?

    <p>Disciplinary action that is consistent with the nature of the wrongdoing.</p> Signup and view all the answers

    What is a key characteristic of leadership in promoting a culture of compliance?

    <p>Balancing business incentives with material compliance incentives.</p> Signup and view all the answers

    What should management do regarding reports of suspected wrongdoing?

    <p>Take allegations seriously and investigate in a timely manner.</p> Signup and view all the answers

    Which of the following reflects a commitment to organizational justice?

    <p>Applying fairness and consistency in discipline and promotions.</p> Signup and view all the answers

    What should the communication strategies include regarding compliance and ethics failures?

    <p>Sharing lessons learned across the organization in appropriate detail.</p> Signup and view all the answers

    How should individuals reporting wrongdoing be treated according to compliance protocols?

    <p>They should have protection with zero tolerance for retaliation.</p> Signup and view all the answers

    What action is important for attracting and retaining capable individuals in compliance risk management?

    <p>Develop tools for managing compliance risks.</p> Signup and view all the answers

    What constitutes a key aspect of accountability for leadership in compliance?

    <p>Incorporating compliance risk management into employee performance measurement.</p> Signup and view all the answers

    What is one key factor that influences risk severity in compliance assessments?

    <p>The impact on the organization’s strategy and business objectives</p> Signup and view all the answers

    Which measurement category is associated with direct financial consequences of noncompliance?

    <p>Legal impact</p> Signup and view all the answers

    What can result from a significant reputational impact due to compliance failures?

    <p>Damage to the organization’s image and brand</p> Signup and view all the answers

    Which of the following is NOT a consequence of compliance risk?

    <p>Increase in licensing fees</p> Signup and view all the answers

    What is a possible indirect financial impact of compliance risks?

    <p>Loss of operational efficiency</p> Signup and view all the answers

    Which component is vital for assessing the severity of compliance risks?

    <p>The scale and measurement methodology tailored to the organization’s needs</p> Signup and view all the answers

    How can the impact of noncompliance on strategic goals primarily manifest?

    <p>Prohibition to pursue new customers</p> Signup and view all the answers

    What role does organizational culture play in compliance risk assessments?

    <p>It influences employee adherence to compliance practices.</p> Signup and view all the answers

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