Which of the Following Is Not a Primary Objective of Internal

question 15

Multiple Choice

Which of the following is not a primary objective of internal control as established by COSO?

• A)Efficiency and effectiveness of operations.
• B)Effective purchasing systems.
• C)Compliance with laws and regulations.
• D)Reliable financial reporting.

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Definitions:

Financing Statement

A document filed by a creditor to indicate a security interest in the property of a debtor, used in securing loan agreements.

Perfection

In legal and finance contexts, the act of securing a priority interest in collateral to protect a secured loan or transaction.

Certificate of Deposit

A savings certificate entitling the bearer to receive interest, which has a fixed maturity date, and typically restricts withdrawal of funds before that date.

Breached the Peace

Breaching the peace refers to causing a disturbance or acting in a manner that disrupts public order or tranquility, often leading to legal penalties.