BSD Corporation Developed an Internal Control Plan Using the COSO

question 33

Multiple Choice

BSD Corporation developed an internal control plan using the COSO framework. Based on the CoBIT accountability framework, which of the following statements is most true?

• A)External auditors are responsible to all organizational stakeholders for communicating information from the plan.
• B)The board of directors is responsible to all organizational stakeholders for communicating information from the plan.
• C)Both A and B are true.
• D)Neither A nor B is true.

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Definitions:

Statute of Frauds

A legal principle requiring certain contracts to be in writing and signed by the party to be charged to be enforceable.

Oral Contract

An agreement between parties that is spoken, not written, but is still legally binding.

Customized Goods

Products that are specifically made according to the specifications or requirements of a customer.

Partial-Performance Exception

A legal principle that allows for the enforcement of an oral contract when one party has taken significant action based on the agreement, despite the lack of a written contract.