The COSO Report Identified a Component of Internal Control as the Policies

question 54

Multiple Choice

The COSO report identified a component of internal control as the policies and procedures that help ensure that management directives are carried out and that management directives are achieved The component is:

• A)Control activities
• B)Risk assessment
• C)Monitoring
• D)Information and communication

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Definitions:

Annual Holding Cost

The total cost incurred by holding inventory over a year, including storage, insurance, and opportunity costs.

UPS

United Parcel Service, a global shipping and logistics company known for its brown delivery trucks and comprehensive tracking system.

FedEx

A US-based global delivery services corporation recognized for its rapid overnight delivery capabilities and for developing a tracking system that offers immediate updates on the whereabouts of packages.

Temporal Aggregation

The process of combining or summarizing time-series data over longer time periods to simplify analysis, reduce variability, and identify trends.