Question

Your organization has implemented a robust ERM program similar to the one outlined in this chapter. The audit committee has asked you to assess the design adequacy and operating effectiveness of the program. Because the audit committee members are familiar with COSO ERM, they would like you to assess the veracity of the ERM program relative to the five components of the ERM. Based on this request, develop a list of steps you would follow to test each of the ERM components. Include at least two work steps for each component.

Textbook: Internal auditing: Assurance & advisory services fourth addition Chapter four

Answer 1

Answers:

Steps of ERM Implemented program

1. identify Risk framework

2 Appointed Responsible Person.

3 Draw a flow chart of risk of an organization

4 take a Correct decision

5 Change local culture to as an enterprise culture.

COSO Component

1 Information and communication : Risk of an orgainazation

2 Control Activity : Control on Risk of organization.

3 Risk Assessment

4 Internal Environment

5 SMART Object set: S= Specific, M= Mesurable , A=Achivable, R= Relivent, T =Timeliness

6 Risk Event Identifiaction

7 Monitoring of Risk

8 Take an Action on risk