A Component of COSO's Internal Control System Concerns the Process

question 36

Multiple Choice

A component of COSO's internal control system concerns the process of identifying,capturing,and exchanging information in a timely fashion to enable accomplishment of the organization's objective.This component is called

• A)control activities.
• B)information and communication.
• C)monitoring.
• D)control environment.

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Definitions:

Consumer Good

A good used or bought for use primarily for personal, family, or household purposes.

Insolvency

A financial state in which an individual or entity is unable to meet its debt obligations or pay its bills as they come due.

Priority Claims

Debts that are given special status by bankruptcy law, which must be paid before other debts in a bankruptcy proceeding.

Unsecured Creditors

Creditors who have provided loans or credit to a debtor without obtaining specific collateral to secure the debt.