Which of the Following Are Entity-Wide Components of Internal Control

question 103

Multiple Choice

Which of the following are entity-wide components of internal control that can mitigate the risk material misstatement related to debt obligations?

• A) Risk assessment.
• B) Information and communication.
• C) Monitoring controls.
• D) All of these are entity-wide components of internal control.

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Definitions:

Purchasing Process

The sequence of steps followed by an organization to acquire goods or services, starting from the identification of the need to the receipt and approval of the item.

Cash Equivalents

Short-term, highly liquid investments that can be easily converted into a known amount of cash.

Highly Liquid

An asset or investment that can be quickly converted into cash without much loss in value, ensuring easy accessibility of funds.

Certificates of Deposit

Time deposit financial products provided by banks that offer a fixed interest rate in exchange for keeping a deposit untouched for a predetermined period.