Application Questions
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89. The
Vice President
of Operations and the Vice President of Finance have expressed concern
about
the working relationships among various business units within the
company. The
change in upper management six years ago recognized the opportunities
for new
markets and aggressively went after those markets. As a result,
the company
has grown from a $2 Million gross income to a $12 Million gross income
in five
years. The organization’s overall philosophy has changed from one
of
complacence to an aggressively competitive organization. This new
excitement
of success and business outlook has enhanced the competitiveness among
departments. Hence, in the opinion of some members of upper
management, this new
environment has caused uncertainty about the continued future success
of the
company. In the words of one Vice President, “It seems now that
the numbers
are what is strived for not the vision.” The concerned executives
have asked
their risk and control team to develop a model that would help refocus
the
overall mission. Which of the following would be the best model
to address the
over all picture and the portfolio of success inhibitors?
| a. | COSO; The Integrated Control Framework Of The Treadway Commission |
| b. | a risk model
that will completely address the probability and the impact of the risk
upon the vision and objectives |
| c. | an expanded control model that will help address the entire organization and all of the internal and external risk, as well as the strategic plan |
| d. | control models that will ensure that
preventive and corrective controls are adequately in place to address
the
vision
|
...