Which of the Following Are Entity-Wide Components of Internal Control

question 53

Multiple Choice

Which of the following are entity-wide components of internal control that can mitigate the risk of material misstatement related to debt?

• A)Risk assessment.
• B)Information and communication.
• C)Monitoring controls.
• D)All of these are entity-wide components of internal control.

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Definitions:

Contract Rate

The agreed-upon interest rate specified in a contractual agreement, such as a loan or bond.

Market Rate

The prevailing interest rate available in the marketplace on investments or loans.

Bonds

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental.

Cash Received

The actual receipt of cash from transactions, including sales, investments, financing, and other business activities.