Which of the Following Is Not a Factor of Internal

question 29

Multiple Choice

Which of the following is not a factor of internal environment according to the COSO Enterprise Risk Management Framework?

• A) analyzing past financial performance and reporting
• B) providing sufficient resources to knowledgeable employees to carry out duties
• C) disciplining employees for violations of expected behavior
• D) setting realistic targets for long-term performance

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the shares remains the same.

Stockholders' Equity

The residual interest in the assets of the entity after deducting liabilities, representing ownership equity spread among shareholders.

Donated Land

Land that has been given to an organization as a gift, usually recognized at its fair market value on the date of donation.