One Specific Component of Internal Control Is Risk Assessment and Management

question 38

True/False

One specific component of internal control is risk assessment and management.

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Definitions:

Liabilities Reporting

The process of disclosing a company's obligations and debts on its financial statements.

Revenues Test

A criterion used to assess whether revenues are being recognized in the correct accounting period under the accrual basis of accounting.

Operating Segment

A component of a business that engages in business activities earning revenues and incurring expenses, whose operating results are regularly reviewed by the organization's chief operating decision maker.

Separate Disclosures

Financial reporting that requires specific financial statements or items to be presented separately to provide clarity and detail.