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.Which of the following most appropriately groups two items from PRL's plan with a component of the COSO framework?
A)I and II, monitoring
B)II and III, control environment
C)IV and V, information and communication
D)I and V, risk assessment

Question

Quizplus · Accepted Answer

Hiring accountants who understand the importance of strong internal control and including a segment in new employee orientation on the importance of strong internal control both relate to the control environment component of the COSO framework, which involves setting the tone at the top and ensuring that employees understand the importance of internal controls.

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