What Is the Role of Internal Controls During the Assessment

question 59

Multiple Choice

What is the role of internal controls during the assessment of inherent risk?

• A)Internal controls are considered separately,so they are ignored during the assessment of inherent risk.
• B)As the quality of internal controls increases,inherent risk decreases.
• C)As the quality of internal controls improves,inherent risk increases.
• D)There is a direct relationship between the quality of internal controls and inherent risk.

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Definitions:

Retrieval

The process of accessing and bringing into conscious awareness information stored in memory.

Stored Information

Information that is retained in the brain or another storage system for retrieval and use at a later time.

Sensory Memory

The shortest-term element of memory, it is the ability to retain impressions of sensory information after the original stimuli have ended.

Sensory Modalities

the different channels through which humans and animals perceive the environment, such as sight, sound, touch, taste, and smell.