Which of the Following Statements Is Correct with Regard to Risk

question 250

Multiple Choice

Which of the following statements is correct with regard to risk management?

• A) The board's responsibility for risk management cannot be assigned to a board committee, such as a board risk committee.
• B) The chief audit executive is accountable to the board for designing, implementing and monitoring the risk management process.
• C) The total process of risk management, which includes a related system of internal control, is the responsibility of the board.
• D) The finance director is responsible for the overall implementation of the risk management process.

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Definitions:

Expense Accounts

These are ledger accounts that track the costs incurred by a company in the course of doing business, excluding capital expenditures.

Adjusting Entries

Journal entries made at the end of an accounting period to update income and expense accounts and ensure compliance with the accrual method of accounting.

Closing Entries

Closing entries are journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, thereby preparing the temporary accounts for the next accounting period.

Adjusted Trial Balance

A trial balance taken after adjusting entries have been made to ensure total debits equal total credits.