Which of the Following Is Not True of Internal Control

question 4

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:

Withdrawal

The act of removing funds from an account, or the act by an owner of taking assets out of a business for personal use.

Total Assets

The sum of all resources owned by a company having economic value, as reported on the balance sheet, including both current and long-term assets.

Total Capital

Total capital refers to the sum of a company's debt and equity, representing the total funds that a company can use for its operations, expansion, and investment activities.

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, reflecting how much of the asset's value has been used up over time.