Question

Which of the following is NOT one of the five COSO (Committee of SponsoringOrganizations of the...

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

Homework Answers

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.

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