The COSO Report Stresses That

question 63

Multiple Choice

The COSO report stresses that:

• A)Internal control is a process
• B)An internal control system,if properly designed,can become a substitute for management
• C)People only at high levels of an organization are an important part of an internal control system
• D)An internal control system should consist of three interrelated components: the control environment,risk assessment,and control activities

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Definitions:

Expense

Costs incurred by a business in the process of earning revenues, typically classified as operating or non-operating expenses.

Common Stock

A type of equity security representing ownership in a corporation, entitling the owner to vote at shareholder meetings and receive dividends.

Legal Liability

The legal responsibility to pay debts or damages, which can arise from contracts, negligence, or other legal means.

Declared

Pertains to dividends or other distributions that have been officially announced by a company's board of directors.