The framework that suggested by COSO is useful for board of directors, management, all personnel, and all other related parties. However, this internal control framework has a particular importance and benefit for board of directors and management. Below are explained some important points which are beneficial for board of directors and management. COSO framework:

• can be applied to all types of business.

• has a principle-based approach and this approach can provide flexibility to the internal control process.

• states how components and related principles are present and functioning and how components operate together. So, they can understand the requirements for effective controls.

• facilitates risk assessment prepares an appropriate response within acceptable level and deals with fraud.

• can be applied not only in financial reporting but also all other types of reporting, operating and compliance objectives.

• can help to eliminate ineffective, redundant, or inefficient controls.

The correct answer is B.