The Five Interrelated Components of Internal Control (According to the COSO

question 29

Multiple Choice

The five interrelated components of internal control (according to the COSO framework) include the following:

• A) Control environment, risk assessment, control activities, organizational structure, and monitoring
• B) Control environment, risk assessment, integrity and ethical values, information and communication, and monitoring.
• C) Control environment, risk assessment, control activities, information and communication, and monitoring
• D) Control environment, risk assessment, control activities, information and communication, and human resource policies and practices

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Definitions:

Critical Thinking

Critical Thinking is the analytical process of objectively evaluating information to make reasoned judgments and solve problems.

Investment

The act or method of distributing resources, typically funds, with the aim of earning a return or gaining financial profit.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the tangible machinery and production equipment used in environments such as factories.

Tangible Capital

Physical assets possessed by a business that are used in producing goods or services, such as buildings or machinery.