Which of the Following Is Not True of Internal Control

question 54

Multiple Choice

Which of the following is not true of internal control as defined by COSO?

• A)It is narrower than internal control over financial reporting.
• B)It is a process that includes all elements of internal control working together.
• C)It includes all the people in the organization.
• D)It starts at the top of the organization in setting a tone.

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Definitions:

Leverage

The use of various techniques or borrowed capital (debt) to increase the potential return of an investment.

Outsourcing

Transferring a firm’s activities that have traditionally been internal to external suppliers.

External Suppliers

Third-party companies or entities that provide products or services to another company as part of the supply chain, outside of the purchasing company's organization.

Many-Suppliers Strategy

A procurement approach where a company sources its materials or products from a large number of suppliers to enhance competition and reduce supply risk.