Multiple Choice
The proper use of _____ keys is crucial to controlling data redundancy in accounting information systems.
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6. Internal Controls and Reporting Cash
Five Components of Internal Controls
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is NOT one of the five components of internal control as defined by the COSO framework?
A
Risk Assessment
B
Control Environment
C
Information and Communication
D
Financial Statement Preparation
Verified step by step guidance1
Understand the COSO framework: The Committee of Sponsoring Organizations of the Treadway Commission (COSO) developed a framework for internal control, which includes five key components. These components are designed to help organizations achieve their objectives related to operations, reporting, and compliance.
Identify the five components of internal control: The COSO framework defines the five components as (1) Control Environment, (2) Risk Assessment, (3) Control Activities, (4) Information and Communication, and (5) Monitoring Activities.
Compare the options provided in the question with the five components of the COSO framework: The options listed are Risk Assessment, Control Environment, Information and Communication, and Financial Statement Preparation.
Recognize that 'Financial Statement Preparation' is not one of the five components of internal control as defined by the COSO framework. It is a separate process related to financial reporting, not a component of internal control.
Conclude that the correct answer is 'Financial Statement Preparation' because it does not align with the five components of internal control outlined in the COSO framework.
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