Which Component of Internal Control Relates to the Policies and Procedures

question 11

Multiple Choice

Which component of internal control relates to the policies and procedures that management establishes to address the risks that might prevent the organization from achieving its objectives?

• A) Control activities
• B) Monitoring
• C) Risk assessment
• D) Information and communication

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Definitions:

Forged Check

A check that has been illegally modified or fabricated entirety by someone other than the account holder, intended to deceive and facilitate unauthorized transactions.

Liable

Legally responsible or answerable for an action or event, potentially subject to legal obligations or compensations.

Certificate of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate, often issued by banks.

Promissory Note

A financial document in which one party (the maker) promises to pay another party (the bearer) a definite sum of money, either on a specific date or upon demand.