Which of the Following Is Not True of Internal Control

question 54

Multiple Choice

Which of the following is not true of internal control as defined by COSO?

• A)It is narrower than internal control over financial reporting.
• B)It is a process that includes all elements of internal control working together.
• C)It includes all the people in the organization.
• D)It starts at the top of the organization in setting a tone.

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Definitions:

Florists

Businesses or individuals specializing in arranging and selling flowers and ornamental plants.

Receivable

An amount of money owed to a company by its customers or clients for goods or services delivered but not yet paid for.

Inventory Increase

A rise in the quantity of products or materials that a company has available for sale or use, which is often an indicator of production levels or sales expectations.

Cash Discount

A reduction in the amount due by a buyer if payment is made within a specified period.