Which of the Following Is Not a Component of Internal

question 33

Multiple Choice

Which of the following is not a component of internal control?

• A) Control environment
• B) Information and communication systems
• C) Monitoring of controls
• D) Independence of the audit committee

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Definitions:

Rights and Liabilities

Legal entitlements and obligations that individuals or entities possess in a legal agreement or under the law.

Party

An individual or entity involved in a legal agreement or dispute.

Ordinary Bailment

A legal relationship where physical possession of personal property is transferred from one person to another, but ownership is not.

Bailee

A person or entity to whom goods are entrusted for a specified purpose by the bailor.