Choice "A" is correct. Monitoring is one of the eight components of COSO's enterprise risk management (ERM) framework. The eight components of the ERM framework are summarized as follows in the mnemonic IS EAR AIM:
Internal environment | Event identification | Activities (control) |
Setting objectives | Assessment of risk | Information and communication |
| Risk response | Monitoring |
Choice "c" is incorrect. Operations are not one of the eight components of the COSO's ERM framework identified by the mnemonic IS EAR AIM as shown above.Choice "b" is incorrect. Reporting is not one of the eight components of the COSO's ERM framework identified by the mnemonic IS EAR AIM as shown above.Choice "d" is incorrect. Compliance is not one of the eight components of the COSO's ERM framework identified by the mnemonic IS EAR AIM as shown above.
