Pam is a receptionist for Dunderhead Paper Co.,which has strict corporate policies on appropriate use of corporate resources.The first week of August,Pam saw Michael,the branch manager,putting pencils,pens,erasers,paper and other supplies into his briefcase on his way out the door.This situation best reflects a weakness in which aspect of internal environment,as discussed in the COSO Enterprise Risk Management Framework?
A) Integrity and ethical values
B) Risk management philosophy
C) Restrict access to assets
D) Methods of assigning authority and responsibility

Question

Quizplus · Accepted Answer

Pam's observation suggests a lack of integrity and ethical values within the organization, as Michael is taking company assets for personal use without permission. This indicates a failure of employees to act in accordance with the company's values and principles, which falls under the internal environment factor of integrity and ethical values in the COSO ERM framework.

Pam Is a Receptionist for Dunderhead Paper Co