Risk Assessment Is an Important Component of an Internal Control

question 20

True/False

Risk assessment is an important component of an internal control system.

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Definitions:

Shift Premiums

Additional pay granted to employees who work less desirable hours, such as night shifts, weekends, or holidays.

Profit Sharing

A business practice where employees receive a share of the company's profits, in addition to their regular salary.

Compensation Items

Refers to the various forms of pay or rewards given to employees for their work, including salaries, bonuses, benefits, and perks.

Organizational Structure

A system that outlines how activities are directed in order to achieve an organization's goals, including the roles, responsibilities, and communication paths.