The Primary Objective of the Committee of Sponsoring Organizations of the Treadway

question 71

True/False

The primary objective of the Committee of Sponsoring Organizations of the Treadway Commission (COSO),a private-sector initiative formed in 1985,is to identify the factors that cause fraudulent financial reporting and to make recommendations to reduce its incidence._________________________

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Definitions:

Binder

A written, temporary insurance policy.

Policy

In insurance law, a contract for insurance coverage. The policy spells out the precise terms and conditions as to what will and will not be covered under the contract.

Potential Loss

The possibility of experiencing a negative outcome, often calculated in terms of financial impact.

Risk

A prediction concerning potential loss based on known and unknown factors.