PRL Corporation's Internal Control Plan Is Based on the COSO

question 20

Multiple Choice

PRL Corporation's internal control plan is based on the COSO framework.It includes five items: (i) conducting ongoing evaluations of internal control during the normal course of operations, (ii) hiring accountants who understand the importance of strong internal control, (iii) including a segment in new employee orientation on the importance of strong internal control, (iv) periodic employee surveys that identify new issues that require internal controls, (v) a quarterly newsletter explaining elements of the internal control plan.Which of the following most appropriately groups two items from PRL's plan with a component of the COSO framework?

• A)I and II, monitoring
• B)II and III, control environment
• C)IV and V, information and communication
• D)I and V, risk assessment

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Definitions:

Distracting Emotional Noise

Refers to emotional disturbances that interfere with the ability to listen or communicate effectively.

Effective Listening

The skill of attentively hearing, understanding, and responding to verbal messages and non-verbal cues in communications.

Criticizing

involves expressing disapproval or pointing out the faults of something or someone, often aiming to indicate areas of improvement or to enforce standards.

Task-Oriented

describes a focus or approach that prioritizes the completion of specific tasks or objectives over interpersonal relationships.