According to the COSO framework, which of the following is not a principle of internal control?
According to the COSO framework, which of the following is not a principle of internal control?
According to the COSO framework, the principles of internal control are part of five components: Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring Activities. Human resource policies and practices, while important, are not explicitly listed as one of these principles. Therefore, the option 'Human resource policies and practices' is not a principle of internal control according to the COSO framework.
By definition, the principles are integrity and ethical values,Mgt philosophy and operating style,Organizational status,Human resources policy and practices,Competence of personnel. Risk management is nt mentioned
But these are elements of the control environment, not principles of internal control
All the components mentioned except the RA are components of control environments. I think the question should have been asked more specifically to hint at the control environment.
why Risk assessment?
B. Human resource policies and practices. According to the COSO (Committee of Sponsoring Organizations of the Treadway Commission) framework, human resource policies and practices are not explicitly listed as one of the principles of internal control. The principles of internal control, as defined by COSO, are: Control Environment Risk Assessment Control Activities Information and Communication Monitoring Activities While human resource policies and practices are important considerations within the broader control environment, they are not specifically identified as one of the core principles in the COSO framework. The other options (A, C, and D) are principles within the COSO framework.