Which of the Following Is Not an Underlying Principle Related

question 109

Multiple Choice

Which of the following is not an underlying principle related to risk assessment?

• A) The organization should have clear objectives in order to be able to identify and assess the risks relating to the objectives.
• B) The auditors should determine how the company's risks should be managed.
• C) The organization should consider the potential for fraudulent behavior.
• D) The organization should monitor changes that could impact internal controls.

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Definitions:

Random Experiment

An experiment or process for which the outcome cannot be predicted with certainty beforehand.

Mutually Exclusive

Two events that cannot occur at the same time, implying that the occurrence of one event precludes the occurrence of the other.

Collectively Exhaustive

Refers to a set of events that covers all possible outcomes, ensuring that no possibilities are left out.

Equally Likely

A term used in probability to describe outcomes that have the same chance of occurring.