Which of the Following Describes the Risk Assessment Component of Internal

question 102

Multiple Choice

Which of the following describes the risk assessment component of internal control?

• 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 them.
• D) Risk assessment is designed to ensure that the business's goals are achieved.

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Definitions:

Transportation Costs

Expenses incurred in the process of moving goods and services from one location to another, often a significant factor in pricing and supply chain management.

Annual Income

The total amount of money earned by an individual or organization in one year, from all sources.

U.S. Households

Refers to living arrangements in the United States, encompassing all the people who occupy a housing unit.

Economic Change

encompasses shifts in an economy's structure or performance, impacting employment, income levels, and the production of goods and services.