Which of the following is not one of the fundamental concepts in the COSO report's definition of internal control? A) Internal control is a process. B) Internal control is effected by people. C) Internal control is a guarantee. D) Internal control can be expected to provide only reasonable assurance, not absolute assurance, to an entity's management and board. E) Internal control is geared to the achievement of objectives in the overlapping categories of financial reporting, compliance, and operations.

Question

Quizplus · Accepted Answer

The COSO framework emphasizes that internal control provides only reasonable assurance to an entity's objectives and is not a guarantee. This is because there are inherent limitations in all internal control systems, meaning they cannot ensure absolute assurance against material misstatement or loss.

Which of the Following Is Not One of the fundamental