The definition of internal control developed by the Committee of Sponsoring Organizations (COSO)includes controls related to the reliability of financial reporting,the effectiveness and efficiency of operations,and:
A)Compliance with applicable laws and regulations.
B)Effectiveness of prevention of fraudulent occurrences.
C)Safeguarding of entity equity.
D)Incorporation of ethical business practice standards.

Question

Quizplus · Accepted Answer

The definition of internal control provided by COSO includes controls related to financial reporting, operations, and compliance with applicable laws and regulations. Therefore, choice A is the best answer. While ethical business practices and preventing fraud are important aspects of internal control, they are not specifically mentioned in COSO's definition. Safeguarding entity equity is also not mentioned.

The Definition of Internal Control Developed by the Committee of Sponsoring