Which of the Following Is Not One of the Underlying

question 43

Multiple Choice

Which of the following is not one of the underlying principles of an effective control environment as developed by COSO?

• A)The organization demonstrates a commitment to integrity and ethical values.
• B)The board of directors demonstrates independence from management and exercises oversight for the development and performance of internal control.
• C)Management establishes,with board oversight,structures,reporting lines,and appropriate authorities and responsibilities in pursuit of objectives.
• D)The organization considers the potential for fraud in assessing risks to the achievement of objectives.

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Definitions:

Amortization Expenses

The gradual write-off of the initial cost of intangible assets over a period of time, reflecting their consumption, expiration, or obsolescence.

DPS

Stands for Dividends Per Share, indicating the total dividends paid out by a company per share of its stock.

EPS

A financial ratio indicating how much money a company makes for each share of its stock, also known as earnings per share.

EBIT

A financial metric used to evaluate a company's operating performance by calculating its profit without the effects of financing and tax expenses.