Answer :
The Internal Control-Integrated Framework by the Committee of Sponsoring Organizations (COSO) is the standard for designing, analyzing, and evaluating internal controls within organizations, aligning the organizational design with corporate strategy. the correct answer is option c Internal Control-integrated Framework by the Committee of Sponsoring Organization
The widely accepted standard by which companies are expected to design, analyze, and evaluate internal controls is the Internal Control-Integrated Framework (ICIF) published by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). This framework is acknowledged globally and provides a comprehensive structure for organizations to assess and enhance their systems of internal control. It includes identification of key concepts like control environment, risk assessment, control activities, information and communication, and monitoring activities. The relevance of ICIF is evident in the consistency it provides in the evaluation of internal controls which is critical for the reliability of financial reporting, compliance with laws and regulations, and the effective and efficient operation of an organization.
Organizational design should align with the corporate strategy, either local or centralized, to ensure effective management and adaptation to changes. The COSO framework helps organizations to achieve this alignment and creates a standard measure across different organizational structures. The framework's broad acceptance hails from its universal applicability across diverse industries and businesses. the correct answer is option c Internal Control-integrated Framework by the Committee of Sponsoring Organization
