The 1992 COSO Report Identifies Five Components for an Effective

question 12

Multiple Choice

The 1992 COSO report identifies five components for an effective internal control system.Which of those five includes the methods used to inform employees about their roles and responsibilities pertaining to internal control?

• A)Control procedures
• B)Control environment
• C)Control activities
• D)Information and communication

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Definitions:

Part Performance

A legal principle that allows an incomplete contract to be enforced if one party has taken significant actions based on the agreement, demonstrating the existence of the contract.

Oral Promise

An agreement made verbally that may or may not be legally binding, depending on the context and content.

Modification

The process of making changes or alterations to something, such as a contract or plan, to correct or improve it.

Oral Contract

is an agreement between parties that is spoken and not written, yet it is legally binding.