The Third Component of COSO's Internal Control Model Is Risk

question 1

Multiple Choice

The third component of COSO's internal control model is risk assessment.Part of risk assessment is to identify threats to companies.If a company does the right things in the wrong way,this is known as

• A)a strategic threat.
• B)an operating threat.
• C)a financial threat.
• D)an information threat.

---

Definitions:

High Power Distance

A term from cultural dimensions theory referring to the degree to which less powerful members of organizations within a country expect and accept that power is distributed unequally.

Uncertainty Avoidance

A cultural dimension that describes the extent to which societies are comfortable with ambiguity, uncertainty, and unstructured situations.

Collectivist Ideals

Principles that prioritize the needs and goals of the group over individual desires and achievements.

Intolerance

Lack of willingness or ability to tolerate the existence of opinions or behavior that one dislikes or disagrees with.