Monitoring,the Fifth Component of Internal Control,involves

question 6

Multiple Choice

Monitoring,the fifth component of internal control,involves

• A) assessing the quality of internal controls over time and taking corrective actions if necessary.
• B) studying the methods used and records established to identify, assemble, analyze, classify, record, and report the organization's transactions.
• C) maintaining accountability for the financial structure (i.e., assets and liabilities) of the organization.
• D) assessing and managing the risks that affect the organization's objectives.

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Definitions:

Unlimited Performance Measures

A theoretical concept where performance can be evaluated using an infinite number of metrics, beyond the traditional financial and non-financial indicators.

Benchmarking

A process of measuring business processes or performance metrics to industry bests or competitors, aiming for continuous improvement.

Transfer Pricing Formula

A set of methods or calculations used to determine the price for goods and services transacted between controlled or related legal entities within an enterprise.

Durian Juice Concentrate

A thick liquid made by removing most of the water from durian fruit juice, used as a base in food products and beverages.