Which of the Following Is Not One of the Underlying

question 43

Multiple Choice

Which of the following is not one of the underlying principles of an effective control environment as developed by COSO?

• A)The organization demonstrates a commitment to integrity and ethical values.
• B)The board of directors demonstrates independence from management and exercises oversight for the development and performance of internal control.
• C)Management establishes,with board oversight,structures,reporting lines,and appropriate authorities and responsibilities in pursuit of objectives.
• D)The organization considers the potential for fraud in assessing risks to the achievement of objectives.

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Definitions:

Technological Synergy

The phenomenon where the interaction or cooperation of two or more technologies produce a combined effect greater than the sum of their separate effects.

Strategic Management

The process of setting goals, conducting analyses, making decisions, and implementing strategies in an organization to achieve its long-term objectives.

Scenario Analysis

A process of analyzing possible future events by considering alternative possible outcomes or scenarios.

Strategic Planning

Strategic planning involves determining the course an organization will take and deciding how to allocate resources, such as money and personnel, to follow that path.