The COSO framework is designed to help companies structure and evaluate their internal controls. Which of the following is not an internal control component under COSO?
A) Risk assessment
B) Monitoring activities
C) Rationalization
D) Control environment
E) All above are internal control components under COSO

Question

Quizplus · Accepted Answer

Rationalization is not considered a component of the COSO framework. The COSO framework includes five components: control environment, risk assessment, control activities, information and communication, and monitoring activities. Rationalization, often related to fraud, is not one of these components.

The COSO Framework Is Designed to Help Companies Structure and Evaluate