ExpertMedium1 markMultiple Choice
CPA · Question 47 · Area 1: Business Analysis
Which component of the COSO ERM Framework addresses the organization's 'Tone at the Top'?
Which component of the COSO ERM Framework addresses the organization's 'Tone at the Top'?
Answer options:
A.
Governance and Culture
B.
Strategy and Objective-Setting
C.
Performance
D.
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.
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