Question

Q 8

1. One of the seventeen COSO principles of internal control states that “the organization holds individual accountable for their internal control responsibilities in the pursuit of objectives.” To which component of internal control does this principle belong?

   		A. Control Environment
   		B. Risk Assessment
   		C. Control Activities
   		D. Information and Communication
   		.

Answer 1

Solution. 8.The correct option is A.Control Environment

Explanation: COSO(Committee of Sponsoring Organizations) principles of internal control - "the organization holds individual accountable for their internal control responsibilities in the pursuit of objectives." They set standards for regulating and controlling internal affairs of the organization. This given statement comes under option A.Control Environment. Other options does not hold true as they do not include above given statement in the question as their principles. Risk assessment encompasses risk management, control activities involves activities mitigating risks, information and communication involves transfer of information relating controlling across the organization.