The COSO Principle That an Organization Should Identify and Assess

question 78

Multiple Choice

The COSO principle that an organization should identify and assess changes that significantly impact the system of internal control is related to which COSO component?

• A) Control Environment
• B) Risk Assessment
• C) Control Activities
• D) Monitoring

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Definitions:

Capital

Refers to financial assets or the financial value of assets, such as funds held in deposit accounts and resources used for production.

Amortization Payment

A periodic payment which includes both interest and principal, used to pay off debt over a certain period of time.

Average Fixed Cost

The fixed cost per unit of output, which decreases as the quantity of output increases.

Average Total Cost

The total cost of production divided by the quantity of output produced, encompassing both fixed and variable costs.