Which Component of COSO's Internal Control System Concerns the Process

question 65

Multiple Choice

Which component of COSO's internal control system concerns the process that provides feedback on the effectiveness of the other four components of internal control?

• A)Information and communication.
• B)Monitoring.
• C)Control activities.
• D)Risk assessment.

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Definitions:

Ratification

The formal approval or confirmation of an act or agreement that was signed but not yet authorized.

Unauthorized Agent

An individual who acts on behalf of another without having the legal or official permission to do so.

Principal

The amount of money that is originally invested or loaned, prior to interest or profit.

Primarily Liable

Refers to the party in a financial transaction or contractual agreement who has the direct responsibility to perform or pay.