Define the COSO component "Risk Assessment"
A)to identify risks to the entity's ability to achieve its objectives
B)the procedures used by the company to help it achieve its objectives
C)systems to exchange the information needed to make decisions
D)to determine whether internal controls effectively prevent misstatements or detect misstatements in the financial statements

Question

Quizplus · Accepted Answer

The COSO component "Risk Assessment" is defined as the process of identifying risks to the entity's ability to achieve its objectives. It involves analyzing the likelihood and impact of various risks and developing strategies to mitigate or manage them. This process helps organizations make informed decisions about how to allocate resources and prioritize actions to reduce risk and maximize opportunities for success.

Define the COSO Component "Risk Assessment