One of the major components of an organization's internal control structure includes:
A)major new financing.
B)the financial environment.
C)risk assessment.
D)telecommunication equipment.

Question

Quizplus · Accepted Answer

Risk assessment is a crucial component of an organization's internal control structure. It involves identifying and analyzing potential risks to the organization's assets, operations, and objectives, as well as developing strategies to mitigate or manage those risks.

Option A (major new financing) is not a component of an organization's internal control structure, as it relates to external financing activities.

Option B (the financial environment) is a broader concept that includes factors such as economic conditions, regulatory requirements, and industry trends, and is not specific to internal control.

Option D (telecommunication equipment) is a specific resource or tool that may be used as part of an organization's internal control structure, but it is not a major component on its own.

One of the Major Components of an Organization's Internal Control