Which of the Following Principles Is Within the Control Environment

question 60

Multiple Choice

Which of the following principles is within the control environment component of the seventeen COSO principles of internal control?

• A)The organization demonstrates a commitment to attract, develop, and retain competent individuals in alignment with objectives.
• B)The organization specifies objectives with sufficient clarity to enable the identification and assessment of risks relating to objectives.
• C)The organization identifies risks to the achievement of its objectives across the entity and analyzes risk as a basis for determining how the risks should be managed.
• D)The organization considers the potential for fraud in assessing the risks to the achievement of objectives.

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Definitions:

Discount Date

The deadline by which a payment must be made to avail of a cash discount for early payment.

Due Date

The specific day by which a payment, project, or assignment is required to be completed or submitted.

Complement Rate

In the context of interest rates, this refers to the difference between 100% and the stated rate, used in various financial calculations.

Cash Discount

A reduction in the invoice price offered by the seller to encourage early payment by the buyer.