Question

Which of the following is NOT one of the five COSO (Committee of SponsoringOrganizations of the Treadway commission) components:

		The control environment
		The entity’s risk assessment process.
		The information system and related business processes relevant to financial reporting andcommunication.
		Financial reporting objectives
		Control activities

When performing a substantive analytical procedure the first step in the decision process is todevelop a(n) _______________ for the amount or account balance.

		Trend pattern
		Ratio analysis
		Expectation
		Assertion

Answer 1

Answer- The following is NOT one of the five COSO (Committee of Sponsoring Organizations of the Treadway commission) components = Financial reporting objectives.

Explanation- Five component of internal control of COSO (Committee of Sponsoring Organizations of the Treadway commission) are as follows-

1)- Control Environment

2)- Risk assessment

3)- Control activities

4)-Information and communication

5)- Monitoring

Answer-When performing a substantive analytical procedure the first step in the decision process is to develop an Assertion for the amount or account balance.