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:

Net Income

The total profit of a company after subtracting all expenses, taxes, and costs from total revenue.

Statement Of Cash Flows

A financial statement that highlights the major activities that impact cash flows and, hence, affect the overall cash balance.

Operating Activities

These involve the primary day-to-day activities of a business, such as sales and the purchase of goods or services, which are reflected in its cash flow.

Comparative Balance Sheet

A financial statement that presents the financial position of a company at two or more different points in time, allowing for analysis of trends in assets, liabilities, and equity.