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:

NPV

Net Present Value - a calculation used to assess the profitability of a project or investment by summing the present values of all cash flows associated with it.

IRR

Internal rate of return. A capital budgeting technique that rates projects according to their expected return on invested funds. The higher the return the better.

MIRR

Modified Internal Rate of Return (MIRR) is a financial metric that evaluates the profitability of investments, adjusting the internal rate of return (IRR) to account for the reinvestment of cash flows at a different rate.

Present Value

The current value of a future amount of money or stream of cash flows, discounted at a certain interest rate.