The definition of internal control developed by the Committee of Sponsoring Organizations (COSO)includes controls related to the reliability of internal and external 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 developed by COSO includes controls related to the reliability of internal and external reporting, the effectiveness and efficiency of operations, and compliance with applicable laws and regulations. Therefore, option A is the correct answer as it is directly mentioned in the definition. The other options - B, C, and D - may be important and related to internal control, but they are not explicitly mentioned in the definition provided.

The Definition of Internal Control Developed by the Committee of Sponsoring