COSO: a Framework for Internal Control What Is Internal Control

question 63

Essay

COSO: A Framework for Internal Control What is internal control as defined by COSO? Also,explain the other elements of the definition that are important to internal control.

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Definitions:

X-inefficiency

The difference between actual and minimum possible input costs, often occurring due to a lack of competitive pressure and inefficiencies in production.

Minimum Possible Average Cost

The lowest average cost at which a firm can produce its output in the long run, given its technology and factor prices.

Barriers to Entry

Factors that make it difficult or costly for new firms to enter and compete in an industry, such as high startup costs or strict regulations.