Which Statement Is Correct Concerning the Definition of Internal Control

question 8

Multiple Choice

Which statement is correct concerning the definition of internal control developed by the Committee of Sponsoring Organizations (COSO) ?

• A)Its applicability is largely limited to internal auditing applications.
• B)It is recognized in the Statements on Auditing Standards.
• C)It emphasizes the effectiveness and efficiency of operations over the reliability of financial reporting.
• D)It suggests that it is important to view internal control as an end product as contrasted to a process or means to obtain an end.

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Definitions:

Compounded Monthly

A method of calculating interest where the earned interest is added to the principal at the end of each month, resulting in interest earned on interest in subsequent months.

Calendar Quarter

A period of three consecutive months within a calendar year used for financial and business reporting.

Compounded Monthly

A method of calculating interest where interest is added to the principal balance of an investment or loan once a month.

Future Value

The value of an investment or asset at a specified date in the future, taking into account factors such as interest rates or earnings.