Which of the following items is considered as an objective of the three dimensional model within the framework described in COSO ERM? 

Answer options:

A. Risk assessment
B. Financial reporting
C. Control environment
D. Monitoring

B

The COSO ERM (Enterprise Risk Management) frame work is a 3-dimensional model. The dimensions and their components include: ✑ Strategic Objectives - includes strategic, operations, reporting, and compliance. ✑ Risk Components - includes Internal Environment, Objectives settings, Event identification, Risk assessment, Risk response, Control activities, Information and communication, and monitoring. ✑ Organizational Levels - include subsidiary, business unit, division, and entity-level. The COSO ERM framework contains eight risk components: ✑ Internal Environment ✑ Objective Settings ✑ Event Identification ✑ Risk Assessment ✑ Risk Response ✑ Control Activities ✑ Information and Communication ✑ Monitoring Section 404 of the Sarbanes-Oley act specifies a three dimensional model- COSO ERM, comprised of Internal control components, Internal control objectives, and organization entities. All the items listed are components except Financial reporting which is an internal control objective. Incorrect Answers: A, C, D: They are the Internal control components, not the Internal control objectives.