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.

Question

Quizplus · Accepted Answer

Risk assessment is the process of identifying and analyzing the risks that could prevent a company from achieving its objectives. It is a crucial component of internal control as it helps to ensure that the controls put in place are appropriate and effective in mitigating the identified risks. Option A describes monitoring of controls, option C describes business goals, and option D refers to the culture and values set by senior management.

Which of the Following Describes the Internal Control Component Risk