The situations below relate to the corporate governance structure within various
ID: 2585299 • Letter: T
Question
The situations below relate to the corporate governance structure within various companies. The option provided present principles related to the control environment of the COSO Framework. For each situation, select the appropriate principle.
Situation:
a. The organization holds individual accountable for their internal control responsibilities.
b. The board of directors demonstrates independence from management and exercies oversight of internal control.
c. The organization demonstrates a commitment to integrity and ethical values
d. Management establishes reporting and structures line
e. The management demonstrates a commitment to attract, develop, and retain competent individuals
A company that researches, develops, produces, and markets office equipment encourages its employees to identify and submit suggestions for improving internal control, including internal control over financial reporting. Employees are rewarded in the form of compamy awards and/or cash bonuses for ideas that are used.Explanation / Answer
a. The organization holds individual accountable for their internal control responsibilities.
Answer. It is classified under the principle Control Environment .
b. The board of directors demonstrates independence from management and exercies oversight of internal control.
Answer. It is classified under the principle Control Environment
c. The organization demonstrates a commitment to integrity and ethical values
Answer. It is classified under the principle Control Environment
d. Management establishes reporting and structures line,
Answer. It is classified under the principle Control Environment
e. The management demonstrates a commitment to attract, develop, and retain competent individuals
Answer. It is classified under the principle Control Environment
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.