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.

Understand the closing entries process for merchandising companies.

Explain inventory shrinkage and its accounting treatment.

Understand how to analyze the liquidity of a company through comparative financial information.

Comprehend the perpetual inventory system and its application in accounting for sales.

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Definitions:

Cohesiveness

Refers to the degree of closeness and solidarity among members of a group.

Group Cohesiveness

The extent to which members of a group feel connected and committed to each other and to the group's objectives.

Threat

A perceived danger or harm that may negatively affect an individual's or organization's well-being.

Role Conflict

A situation where an individual faces incompatible demands from different roles they are expected to fulfill.