The 2013 COSO Report Identifies Five Components for an Effective

question 61

Multiple Choice

The 2013 COSO Report identifies five components for an effective internal control system.These are:

• A)Control environment, risk assessment, control activities, information and communication, and monitoring
• B)Control environment, control procedures, control activities, communication, and monitoring
• C)Control procedures, control activities, information, communication, and monitoring
• D)Control procedures, risk assessment, control activities, information and communication, and monitoring

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Definitions:

Secured Creditor

A lender or creditor that has the right to claim specific assets or collateral if the borrower defaults on an agreement.

Repossesses

The action of taking back possession of property, typically by a seller or lender, from the buyer or borrower due to non-compliance with the terms of sale or loan.

Consequential Damages

Damages that do not directly arise from the breach of a contract but result from the breach's indirect effects.

Inventory

The total amount of goods and materials on hand available for sale to customers in the course of business operations.