Which of the Following Is Not a Component of Internal

question 8

Multiple Choice

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

• A)Control environment.
• B)Control activities.
• C)Inherent risk.
• D)Monitoring.

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Definitions:

Monetary Authorities

Institutions responsible for regulating a country's money supply and financial policies, such as central banks.

Inflation Rates

The rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.

Monetarists

Economists who maintain that shifts in the money supply have substantial effects on short-run national output and on the price level across longer time frames.

Money Supply

The aggregate amount of economic resources in terms of money, inclusive of cash, coins, and savings and checking account balances, at a particular moment.