COSO

question 61

Multiple Choice

COSO:

• A) is the body that established an internal control standards framework referenced by the PCAOB.
• B) published a document that explains what an internal control system should be like to be effective.
• C) is the acronym widely used to refer to the Committee of Sponsoring Organizations of the Treadway Commission.
• D) All of the above.

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Definitions:

Biological Needs

Basic physiological requirements essential for maintaining life, such as food, water, and shelter.

Motives

Internal states or conditions that activate behavior and give it direction towards specific goals or needs.

Equilibrium

Equilibrium is a state of balance or stability within a system, achieved through the equal action of opposing forces.

Drive-Reduction Theory

A theory of motivation proposing that the primary purpose of behavior is the reduction of drives, which are state of tension or arousal caused by biological or physiological needs.