Which of the Following Fundamental Concepts Is Stressed by the 2013

question 10

Multiple Choice

Which of the following fundamental concepts is stressed by the 2013 COSO Report?

• A)Internal control is not affected by people
• B)Internal control is geared to the achievement of a company's objectives in the financial reporting area only
• C)Internal control is designed to detect all errors and irregularities that occur within a company's system
• D)Internal control is a process

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Definitions:

Outside Directors

Board members who are not executives or employees of the company, providing independent oversight.

Business Contacts

Individuals or organizations with whom a company communicates or engages in transactions.

Revised Model Business Corporation Act

An updated set of model laws intended to assist states in drafting legislation that governs corporate formation, operation, and dissolution.

Corporate Directors

Individuals elected by shareholders to oversee the management and make major decisions for a corporation.