CFE – Fraud Prevention and Deterrence — Question 41

Which of the following is one of the components of the Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) Enterprise Risk Management—Integrating with Strategy and Performance?

Answer options

• A. Governance and culture
• B. Risk tolerance
• C. Independent monitoring
• D. Operating environment

Correct answer: D

Explanation

The correct answer is D, as the Operating environment is a key component of the COSO framework that addresses how external factors influence risk management and performance. Options A, B, and C, while relevant to risk management, do not specifically represent components outlined in the COSO framework for integrating with strategy and performance.