Which of the Following Describes the Internal Control Component Risk

question 20

Multiple Choice

Which of the following describes the internal control component risk assessment?

• A)Internal auditors monitor company controls to safeguard assets and external auditors monitor the controls to ensure that the accounting records are accurate.
• B)A company must identify its risks.
• C)Risk assessment is designed to ensure that the business's goals are achieved.
• D)Risk assessment is the 'tone at the top' of the business.

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Definitions:

Firms

Organizations or business entities engaged in commercial, professional, or industrial activities, aiming to generate profits by providing goods or services.

Proprietorships

Proprietorships, or sole proprietorships, are businesses owned and operated by a single individual, with no legal distinction between the owner and the business entity.

Limited Liability

The liability of the owners of a corporation is limited to the value of the shares in the firm that they own.

Proprietorship

An unincorporated business firm owned by just one person.