The Principle of Identifying and Assessing Changes That Could Significantly

question 104

Multiple Choice

The principle of identifying and assessing changes that could significantly impact the system of internal control belongs to which of the COSO's Internal Control Model's component?

• A)Control environment.
• B)Risk assessment.
• C)Control activities.
• D)Information and communication.

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Definitions:

Knowledge Worker

An individual whose primary job involves processing and working with information, as opposed to manual labor.

Product Life Cycles

The stages a product goes through from development and introduction to the market, to growth, maturity, and eventual decline.

Empowerment

The process of giving individuals or groups more power and control over their lives or work, often leading to increased autonomy and self-determination.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.