PRL Corporation's internal control plan is based on the COSO framework.It includes five items: (i) conducting ongoing evaluations of internal control during the normal course of operations, (ii) hiring accountants who understand the importance of strong internal control, (iii) including a segment in new employee orientation on the importance of strong internal control, (iv) periodic employee surveys that identify new issues that require internal controls, (v) a quarterly newsletter explaining elements of the internal control plan.Based on those five items alone, which element of PRL's internal control plan is weakest?
A)Risk/control matrix
B)Control activities
C)Information and communication
D)Monitoring

Question

Quizplus · Accepted Answer

Control activities are the weakest element in PRL Corporation's internal control plan based on the provided items. The items listed primarily focus on evaluation, communication, and hiring practices, but there is a lack of specific mention of activities that actively control or mitigate risks, such as specific procedures or controls to address identified risks.

PRL Corporation's Internal Control Plan Is Based on the COSO