One of the Components of Internal Control Identified by COSO

question 44

Multiple Choice

One of the components of internal control identified by COSO required that management must be considering threats and the potential for risks, and stand ready to respond should these events occur.This component is referred to as:

• A)Control Environment
• B)Control Activities
• C)Risk Assessment
• D)Communication

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Definitions:

Causality

Causality is the relation between causes and effects, where one event (the cause) directly leads to another event (the effect).

Thrive

describes a state of flourishing or prospering, often characterized by success, development, or healthy growth in personal, professional, or biological contexts.

Profound Adversity

Severe and extreme difficulties or misfortunes, often leading to significant emotional, physical, or psychological stress.

Resilience

The capacity to recover quickly from difficulties; toughness or the ability to bounce back from life's challenges.