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.

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Definitions:

Payment In Full

The complete settlement of an obligation, such as paying off a loan or a bill, without any remaining balance.

Contractors

Individuals or organizations contracted to perform specific tasks or services for a defined period under agreed terms.

Amortized Loan

A loan with scheduled periodic payments that consist of both principal and interest.

Pure Discount

A financial instrument, such as a zero-coupon bond, that is sold at a discount and pays no interest, only returning the face value at maturity.