Which of the Following Statements Is True

question 60

Multiple Choice

Which of the following statements is true?

• A)The COSO report failed to define internal control
• B)The COSO report emphasized that an internal control system is a tool of management
• C)SAS 78 rejected the definition of internal control provided in the COSO report
• D)COBIT concluded that a company's management is not responsible for establishing and monitoring a company's internal control system

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Definitions:

Foreign Exchange Gain

The profit obtained from holding or trading foreign currencies due to changes in exchange rates.

Exchange Rate

The price of one currency in terms of another currency.

Accounts Receivable-Kagome

An account representing money owed to Kagome (presumably a company) by its customers for goods or services that have been delivered but not yet paid for.

Equity Method Investments-Ferris

A specific example or case of using the equity method for accounting for investments in which an investor has significant influence over the investee, but does not control it.