Question

Which of the following is not one of the interrelated components of COSO's Internal Control—Integrated Framework?

a. Monitoring
b. Control environment
c. Control activities
d. Planning

Answer 1

The correct answer is d. Planning. COSO's Internal Control--Integrated Framework consists of five interrelated components: control environment, risk assessment, control activities, information and communication, and monitoring.

Step-by-step explanation:

The correct answer is d. Planning.

COSO’s Internal Control—Integrated Framework is a widely recognized framework for designing, implementing, and assessing internal controls. It consists of five interrelated components:

1. Control environment: This component sets the tone for the organization and influences the overall control consciousness within the organization.
2. Risk assessment: This component involves identifying and assessing risks to achievement of objectives and determining how to manage those risks.
3. Control activities: This component includes the policies and procedures that help ensure management directives are carried out.
4. Information and communication: This component encompasses the systems and processes that enable the organization to identify, capture, and exchange information in a timely manner.
5. Monitoring: This component involves ongoing assessment of the entire internal control system to ensure it is functioning effectively.

Planning is not one of the interrelated components. It is a separate activity that helps organizations set objectives, develop strategies, and allocate resources.