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.

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Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company’s financial position at a specific point in time, listing assets, liabilities, and shareholders' equity.

Income Statement

A document detailing a firm's income and outgoings during a certain time, ending in either a profit or a deficit.

Net Income

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

Net Loss

The amount by which total expenses exceed total revenues in a specific period, indicating a company's financial performance was negative.