Define the COSO Component "Information and Communications

question 69

Multiple Choice

Define the COSO component "Information and Communications"

• A)to identify risks to the entity's ability to achieve its objectives
• B)the procedures used by the company to help it achieve its objectives
• C)systems to exchange the information needed to make decisions
• D)to determine whether internal controls effectively prevent misstatements or detect misstatements in the financial statements

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Definitions:

Net Operating Income

A measure of a company's profitability that excludes interest and income tax expenses.

Monthly Sales

The total revenue generated from the sale of products or services within a specific month.

Margin of Safety

The difference between actual or expected sales and sales at the break-even point.

Units

Units are individual portions or segments of a whole, such as items produced, sold, or analyzed in a specific context, serving as a basic measure of quantity.