Which of the Following Describes the Internal Control Component "Risk

question 142

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)Risk assessment is the "tone at the top" of the business.
• C)A company must identify its risks and take necessary steps to minimize it.
• D)Risk assessment is designed to ensure that the business's goals are achieved.

---

Definitions:

Social Loafing

The dynamic wherein teamwork leads to a decrease in individual effort applied towards achieving objectives, in contrast to independent work.

Groupthink

A psychological phenomenon in which people striving for consensus within a group fail to consider alternatives, leading to a dysfunctional decision-making outcome.

Social Facilitation

The tendency for people to perform differently, usually better, when in the presence of others than when alone.

Social Loafing

Social loafing is the phenomenon observed when individuals exert less effort to achieve a goal when they work in a group than when they work alone.