Which of the Following Fundamental Concepts Is Stressed by the COSO

question 68

Multiple Choice

Which of the following fundamental concepts is stressed by the COSO report?

• A)Internal control is not affected by people
• B)Internal control is geared to the achievement of a company's objectives in the financial reporting area only
• C)Internal control is designed to detect all errors and irregularities that occur within a company's system
• D)Internal control is a process

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Definitions:

Divisionalized Structure

An organizational framework in which the company is divided into semi-autonomous units or divisions, each with its own operations, resources, and goals.

Duplication

The act of copying or replicating processes, data, or products to increase efficiency or redundancy.

Silos of Knowledge

This term describes the phenomenon where information, knowledge, or expertise is isolated within one department or group within an organization, leading to inefficiencies and a lack of collaboration.

Underutilizes Resources

A situation where the full potential of available resources is not being exploited or used to the maximum extent possible.