According to the COSO Definition of Safeguarding of Assets

question 37

Multiple Choice

According to the COSO definition of safeguarding of assets:

• A)controls over financial reporting are effective if they provide reasonable assurance that asset losses will not occur.
• B)controls over financial reporting are effective if they provide reasonable assurance that losses are properly reflected in the financial statements.
• C)controls over financial reporting are effective if they provide reasonable assurance that asset losses will not occur and that losses are properly reflected in the financial statements.
• D)there is no way to create controls that will provide reasonable assurance that asset losses will not occur.

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Definitions:

Self-Interested

This describes an individual acting in a way that is beneficial primarily to themselves, often at the expense of others or the collective good.

Anonymity

A condition in which a person's identity is not revealed or recognized, making them anonymous.

Altruistic Punishment

A behavior in which individuals punish others for violating social norms, even at a cost to themselves, to encourage cooperation within a group.

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring, driving evolutionary change.