Which of the following descriptions of the internal control system are indicators that risks are managed effectively? 1. Existing controls promote compliance with applicable laws and regulations. 2. The control environment is designed to address all identified risks to the organization. 3. Key controls for significant risks to the organization remain consistent over time. 4. Monitoring systems are in place to alert management to unexpected events.
A) 1 and 3.
B) 1 and 4.
C) 2 and 3.
D) 2 and 4.

Question

Quizplus · Accepted Answer

An effective internal control system ensures compliance with laws (1) and has monitoring systems to alert management to unexpected events (4), indicating that risks are managed effectively.

Which of the Following Descriptions of the Internal Control System