Topic: COSO Internal Control FrameworkWhich of the Following Is the Best

question 21

Short Answer

Topic: COSO Internal Control FrameworkWhich of the following is the best way to compensate for the lack of adequate segregation of duties in a small organization?
A. Disclosing lack of segregation of duties to external auditors during the annual review.
B. Replacing personnel every three or four years.
C. Requiring accountants to pass a yearly background check.
D. Providing greater management oversight of incompatible activities.

---

Definitions:

Business Capacity

The maximum level of output or production that a company can sustain with its current resources and infrastructure.

Sales Units

A measure of the quantity of products sold or services provided over a period of time.

Revenue Expected

The income that a company anticipates receiving from its normal business activities, such as sales of goods or services, during a specific period.

Planned Sales

Forecasted or projected revenue figures based on market analysis, historical data, and anticipated sales activities, important for budgeting and strategic planning.