A Process, Effected by an Entity's Board of Directors, Management

question 48

Multiple Choice

A process, effected by an entity's board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may effect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.

• A)enterprise risk management
• B)internal control
• C)organizational governance
• D)risk assessment

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Definitions:

Monetary System

The set of mechanisms and institutions that a country uses to manage its money supply, including the minting of coins, printing of banknotes, and regulation of credit.

Exchange Rates

The value of one currency for the purpose of conversion to another, indicating how much of one currency can be exchanged for another currency.

Foreign Currencies

Currencies used in countries other than one's own, involved in international trading and financial transactions.

U.S. Businesses

Companies or enterprises that are located within the United States, encompassing a wide range of industries and sizes.