Internal Controls Consist of All of the Following Interrelated Components

question 113

Multiple Choice

Internal controls consist of all of the following interrelated components please choose the correct option:

• A) Control Environment and Risk Assessment
• B) Control Activities and Information and Communication
• C) Monitoring
• D) All of the above

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Definitions:

Dividend Policy

A company's approach to distributing profits back to its shareholders in the form of dividends.

Clientele Effect

A phenomenon where the types of investors attracted to a company's stock are affected by the company's dividend policy or other financial strategies.

Investors

Individuals or institutions that allocate capital with the expectation of receiving financial returns, encompassing various types such as retail and institutional investors.

Retained Earnings

The portion of a company's profit kept in the business after dividends are paid, used for reinvestment or paying down debt.