Chapter 7
1. A process by which organizations select objectives, establish processes to achieve objectives, and monitor performance is
|a. |enterprise risk management |
|b. |internal control |
|c. |organizational governance |
|d. |risk assessment |

ANS: C

2. A process, effected by an entity’s board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may effect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.
|a. |enterprise risk management |
|b. |internal control |
|c. |organizational governance |
|d. |risk assessment |

ANS: A

3. A manager of a manufacturing plant alters production reports to provide the corporate office with an inflated perception of the plant's cost effectiveness in an effort to keep the inefficient plant from being closed. This action would be classified as a(n):
|a. |risk