Which of the Following Is NOT the Interrelated Component of Internal

question 24

Multiple Choice

Which of the following is NOT the interrelated component of internal control?

• A) Control environment
• B) Risk assessment
• C) Control activities
• D) Planning control

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Definitions:

Reduced Comparability

A situation where differences in accounting policies or external factors make it difficult to directly compare financial statements across periods or entities.

Financial Statements

Documents that present an entity's financial activities and condition to users, including balance sheet, income statement, and statement of cash flows.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations by comparing its current assets to its current liabilities.

Disclosure Requirements

Regulations or standards mandating companies to reveal certain financial and non-financial information to maintain transparency and inform stakeholders.