Which of the Following Describes the Internal Control Component Risk

question 20

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

---

Definitions:

Validity

The degree to which a test or instrument measures what it is intended to measure.

Rorschach Test

The Rorschach test is a psychological test in which subjects' perceptions of inkblots are recorded and then analyzed using psychological interpretation or complex algorithms.

Projective Tests

Psychological assessments where individuals are shown ambiguous stimuli and their responses are interpreted to uncover underlying thoughts, feelings, or traits.

Projective Test

A psychological assessment tool that uses ambiguous stimuli to elicit responses that reveal aspects of an individual's personality.