COSO’s Internal Control Model has five components and 17 principles. Which of the following is(are) principle(s) of the control environment component? (Check all that apply.) A. A commitment to attract, develop, and retain competent individuals in alignment with objectives B. Commitment to integrity and ethics C. Holding individuals accountable for their internal control responsibilities in pursuit of objectives D. Considering the potential of fraud E. Selecting, developing, and performing ongoing or separate evaluations of the components of internal control

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anthougo anthougo · Answer 1 · 2020-10-23T20:51:45+02:00

Answer:

COSO’s Internal Control Model

Selection of the principle(s) of the control environment component:

A. A commitment to attract, develop, and retain competent individuals in alignment with objectives

B. Commitment to integrity and ethics

C. Holding individuals accountable for their internal control responsibilities in pursuit of objectives

Explanation:

These two are not part of the five principles of the control environment:

D. Considering the potential of fraud

E. Selecting, developing, and performing ongoing or separate evaluations of the components of internal control

Specifically, the COSO framework principles on the control environment are:

1. Commitment to integrity and ethical values

2. Ensuring that the board of directors exercises oversight responsibility

3. Establishment of structures, reporting lines, authorities, and responsibilities

4. Commitment to a competent workforce

5. Holding people accountable