In: Accounting
The warehouse supervisor is explaining the procedures for documenting inventory transfers to his subordinate. Which of the 2013 COSO IC framework components is this?
Select one:
a. Control activities
b. Control environment
c. Monitoring
d. Information and communication
a. Control activities
As per COSO, Contol actvities are actions (generally described in policies, procedures and standards) that help managemnt mitigate risks in order to ensure the achievement of objectives.
Objectives of Internal Control under COSO framework:
COSO framework identifies 17 principles for effective internal control. Out of these, three principles are relevant for Control activities.
Procedures for documenting inventory transfers involve
Both of these satisfy the principles of control activities, hence it is part of contol activities component of COSO IC Framework, 2013.
Other Components are not relevant in deciding the component for documenting invoice transfers. Other components dealt with different issues.