
Introduction:
Internal control is a process affected by management and directors of the company to provide reasonable assurance in achieving objectives in the following categories:
- Safeguarding assets for business purposes.
- Providing accurate business information.
- Compliance with laws and regulations by employees and managers.
To choose:
The correct option.

Answer to Problem 1SEQ
c.
Explanation of Solution
Explanation for correct answer:
The Committee of Sponsoring Organizations of Treadway Commission (COSO) framework has three objectives to assess the effectiveness of the system of internal control relating to safeguarding the assets against any loss:
- Encompassing reliability.
- Transparency and timeliness of business information.
- Adhering to laws and regulations by the entity.
Thus, compliance with laws and regulations is not an element of internal control defined in COSO framework. It is one of the objectives of internal
Explanation for incorrect answers:
Option A-Control Environment:
It is an element of internal control that defines the attitude of management and employees towards the need of internal control system and expected standards of the conduct.
Option B- Monitoring:
It is an important element to assess the weaknesses in operating internal controls and evaluate the activities of managers and supervisors, the budget and other financial documents.
Option D-Control Procedures:
It is an element of internal control which provides reasonable assurance that the objectives laid down by the management will be achieved including prevention of fraud.
Conclusion:
Thus, the elements of internal control-integrated framework include control environment, monitoring and controlling procedures while complying with laws and regulations is an objective of a control environment.
Want to see more full solutions like this?
Chapter 5 Solutions
Survey of Accounting (Accounting I)
- Please provide the accurate answer to this financial accounting problem using appropriate methods.arrow_forwardPlease provide the solution to this general accounting question using proper accounting principles.arrow_forwardI need help finding the accurate solution to this general accounting problem with valid methods.arrow_forward
- Determine the price of a $1.3 million bond issue under each of the following independent assumptions: Maturity 10 years, interest paid annually, stated rate 8%, effective (market) rate 10%. Maturity 10 years, interest paid semiannually, stated rate 8%, effective (market) rate 10%. Maturity 10 years, interest paid semiannually, stated rate 10%, effective (market) rate 8%. Maturity 20 years, interest paid semiannually, stated rate 10%, effective (market) rate 8%. Maturity 20 years, interest paid semiannually, stated rate 10%, effective (market) rate 10%.arrow_forwardIf total assets increase while liabilities remain unchanged, equity must: A) IncreaseB) DecreaseC) Remain the sameD) Be negativearrow_forwardNo chatgpt!! Which of the following is an intangible asset? A) InventoryB) CopyrightC) EquipmentD) Accounts Receivablearrow_forward
- Which of the following is an intangible asset? A) InventoryB) CopyrightC) EquipmentD) Accounts Receivableno aiarrow_forwardWhich of the following is an intangible asset? A) InventoryB) CopyrightC) EquipmentD) Accounts Receivablearrow_forwardWhat does a ledger account represent? A) A detailed record of all business transactionsB) A summary of trial balancesC) An individual record for each accountD) The final balance of a financial statement Need help!arrow_forward
- What is the primary purpose of accounting? A) To generate tax revenueB) To record, summarize, and report financial transactionsC) To determine the market value of assetsD) To manage payrollarrow_forwardWhat are the three main financial statements in accounting?arrow_forwardCan you solve this general accounting question with accurate accounting calculations?arrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningAuditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub


