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:

Ineffective Restrictions

Limitations or rules that fail to accomplish their intended purpose, often due to being too vague, unenforceable, or not aligned with overarching goals.

Holder in Due Course

A party possessing a negotiable instrument, such as a check or promissory note, in good faith and for valuable consideration, with certain legal protections.

Negotiation

The process by which parties in dispute or potential agreement discuss their differences and attempt to reach a mutually acceptable resolution.

Holder

In finance and legal terms, an individual or entity that possesses a negotiable instrument, like a check or bond, and has the right to enforce it.