Which of the following describes the risk assessment component of internal control?
A)Internal auditors monitor company controls to safeguard assets,and external auditors monitor the controls to ensure that the accounting records are accurate.
B)Risk assessment is the "tone at the top" of the business.
C)A company must identify its risks and take necessary steps to minimize it.
D)Risk assessment is designed to ensure that the business's goals are achieved.

Question

Quizplus · Accepted Answer

Risk assessment is the process of identifying and analyzing potential risks to the organization and taking steps to minimize those risks. It is an essential component of internal control as it helps the organization to identify potential threats and take measures to mitigate them. A company's risk assessment process should include identifying the likelihood and potential impact of each risk and developing controls to manage or reduce the risk to an acceptable level.

Which of the Following Describes the Risk Assessment Component of Internal