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Information & Communication component of internal control aims to ensure that:
AOnly marketing teams receive information
BQuality information is obtained, used, and communicated internally and externally to support control over financial reporting
CInformation stays only with senior management
DOnly IT department handles all communication
Answer & Solution
Correct answer: C. Information stays only with senior management
1. COSO Information & Communication principle: quality info flows internally and externally.
2. Restriction to one group defeats the purpose.
3. It enables timely identification and correction of errors.
_Source: ICAI BoS CA Final Paper 3, Ch 3 "Risk Assessment and Internal Control"_
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