Match the following terms with their correct definitions.
-Possible external threats to the organization's success in accomplishing its goals
A)Accounting system
B)Business process risks
C)Control activities
D)Control environment
E)Internal control system
F)Safeguarding
G)Segregation of duties
H)Strategic risks

Question

Quizplus · Accepted Answer

Strategic risks refer to possible external threats to the organization's success in accomplishing its goals, including changes in technology, competition, or industry regulations.

Answer: B
 Business process risks are internal risks that stem from the organization's processes or procedures, such as errors in data entry or ineffective communication between departments.

Answer: C
 Control activities are specific policies and procedures that are designed to ensure that the organization's objectives are met, such as segregation of duties, approval processes, and physical safeguards.

Answer: D
 Control environment refers to the broader organizational culture and values that shape the attitudes and behaviors of employees, including their willingness to follow policies and procedures.

Answer: E
 Internal control system refers to the combination of control activities, monitoring processes, and the control environment that together form the organization's overall approach to managing risks and achieving its objectives.

Answer: F
 Safeguarding refers to the measures that an organization takes to protect its assets and resources from loss, theft, or damage, such as security systems or backup procedures.

Answer: G
 Segregation of duties refers to the practice of dividing critical tasks among multiple individuals in order to prevent errors, fraud, or misuse of resources.

Match the Following Terms with Their Correct Definitions