Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Five Components of Internal Controls

Financial Accounting

6. Internal Controls and Reporting Cash

Five Components of Internal Controls

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Multiple Choice

Which of the following is one of the five components of internal control as defined by the COSO framework?

Control Environment

Asset Valuation

Financial Reporting

Budgetary Control

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Verified step by step guidance

Understand the COSO framework: The Committee of Sponsoring Organizations of the Treadway Commission (COSO) developed a framework for internal control, which is widely used in financial accounting and auditing. It identifies five key components of internal control.

List the five components of internal control as defined by COSO: These are Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring Activities.

Analyze the options provided in the question: The options are Control Environment, Asset Valuation, Financial Reporting, and Budgetary Control. Compare each option to the five components of internal control.

Recognize that 'Control Environment' is one of the five components of internal control as defined by COSO. The control environment sets the tone of an organization, influencing the control consciousness of its people.

Conclude that the correct answer is 'Control Environment' because it directly matches one of the five components of internal control in the COSO framework.