Question

According to the Committee of Sponsoring Organizations (COSO) of the Treadway Commission, which of the following components of the internal control integrated framework addresses an entity's financial reporting competencies?

A. Control environment
B. Risk assessment
C. Control activities
D. Information and communication

Answer 1

The control activities component of the internal control integrated framework addresses an entity's financial reporting competencies.

Step-by-step explanation:

The answer to your question is C. Control activities.

The Committee of Sponsoring Organizations (COSO) of the Treadway Commission developed an internal control framework that consists of five components: control environment, risk assessment, control activities, information and communication, and monitoring activities.

Out of these components, control activities specifically address an organization's financial reporting competencies. Control activities include the establishment of policies and procedures, segregation of duties, and authorization and approval processes, which ensure the accuracy and reliability of financial reporting.