Without an Effective ________, the Other Components of the COSO

question 101

Multiple Choice

Without an effective ________, the other components of the COSO framework are unlikely to result in effective internal control, regardless of their quality.

• A) risk assessment policy
• B) monitoring policy
• C) control environment
• D) system of control activities

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Definitions:

Organizational Environment

Encompasses the external and internal factors that influence an organization's operating conditions, including economic, technological, social, and legal aspects.

ESOPs

Employee Stock Ownership Plans, a program that provides a company's workforce with an ownership interest in the company.

Share Price

The current price at which a single share of a company's stock can be bought or sold.

Pensions

Retirement plans that provide a fixed income to individuals who are no longer working due to age or disability.