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.

---

Definitions:

Closely Held Corporation

A type of corporation that has a limited number of shareholders and does not offer its shares for sale to the general public, often family-owned or controlled by a small group of investors.

Determination

The process of making a firm decision or settling a matter with conclusiveness.

Business Organization

The structure and legal form under which a business operates, such as a corporation, partnership, or sole proprietorship.

Incorporation

The act of officially recognizing a business entity as distinct from its proprietors, offering limited liability and additional advantages.