Which of the following fundamental concepts is stressed by the COSO report?
A)Internal control is not affected by people
B)Internal control is geared to the achievement of a company's objectives in the financial reporting area only
C)Internal control is designed to detect all errors and irregularities that occur within a company's system
D)Internal control is a process

Question

Quizplus · Accepted Answer

The COSO report emphasizes that internal control is a process, not a one-time event or static activity. It involves ongoing activities and continuous monitoring to ensure objectives are met. The report also stresses the importance of people in the internal control system and the need to design controls to address a wide range of risks, not just those related to financial reporting. The report does not suggest that internal control can detect all errors and irregularities but rather that it helps to provide reasonable assurance that the objectives of the organization will be achieved.

Which of the Following Fundamental Concepts Is Stressed by the COSO