Question

Which one of the following is not a primary component of an internal control system?A. Risk assessmentB. Information and communicationC. MonitoringD. Rationalization

Answer 1

Answer:

D

Explanation:

The internal control structure of a company is made up of the policies and procedures established to provide reasonable assurance that particular objectives will be achieved.

The system or structure consists of the following:

1. Controlling the environment
2. Risk assessment
3. Control activities
4. Information and communication
5. Monitoring

Rationalization is not one of them.