Which of the following is not one of the underlying principles of an effective control environment as developed by COSO?
A)The organization demonstrates a commitment to integrity and ethical values.
B)The board of directors demonstrates independence from management and exercises oversight for the development and performance of internal control.
C)Management establishes,with board oversight,structures,reporting lines,and appropriate authorities and responsibilities in pursuit of objectives.
D)The organization considers the potential for fraud in assessing risks to the achievement of objectives.

Question

Quizplus · Accepted Answer

Consideration of potential fraud is actually one of the underlying principles of an effective control environment, as developed by COSO. Therefore, option D is the incorrect statement. Options A, B, and C are all correct principles of an effective control environment.

Which of the Following Is Not One of the Underlying