CFE – Fraud Prevention and Deterrence — Question 7

According to the Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) Internal Control-Integrated Framework (the Framework), there are five interrelated components of a company’s internal control. Which of the following is NOT among these five components?

Answer options

• A. Ethical culture
• B. Control activities
• C. Monitoring
• D. Risk assessment

Correct answer: A

Explanation

The correct answer is A, as 'Ethical culture' is not one of the five components outlined by COSO. The five components include Control activities, Monitoring, Risk assessment, and two others, which are critical for effective internal control.