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 NOT one of the five components of internal control as defined by the COSO framework?

Risk Assessment

Control Environment

Information and Communication

Financial Statement Preparation

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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 includes five key components. These components are designed to help organizations achieve their objectives related to operations, reporting, and compliance.

Identify the five components of internal control: The COSO framework defines the five components as (1) Control Environment, (2) Risk Assessment, (3) Control Activities, (4) Information and Communication, and (5) Monitoring Activities.

Compare the options provided in the question with the five components of the COSO framework: The options listed are Risk Assessment, Control Environment, Information and Communication, and Financial Statement Preparation.

Recognize that 'Financial Statement Preparation' is not one of the five components of internal control as defined by the COSO framework. It is a separate process related to financial reporting, not a component of internal control.

Conclude that the correct answer is 'Financial Statement Preparation' because it does not align with the five components of internal control outlined in the COSO framework.