The Problems Small Businesses Encounter with Internal Control That Are

question 85

Multiple Choice

The problems small businesses encounter with internal control that are addressed by COSO include the following except

• A) effective boards of directors.
• B) limited segregation of duties and increased focus on monitoring.
• C) compensating for limitations in information technology.
• D) outsourcing increased reporting requirements.

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Definitions:

Initial Owners

The original investors or founders who hold ownership stakes in a company at its inception.

Corporation

A legal entity distinct from its owners, providing limited liability protection, and able to own assets, incur debt, and sell ownership shares.

Directors

Members of a company's board of directors, elected by shareholders to govern and make major decisions on behalf of the company.

Internal Revenue Code

The comprehensive body of tax laws and regulations in the United States, governing federal tax obligations for individuals and organizations.