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)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 that could prevent a business from achieving its objectives. Once risks are identified, steps can be taken to minimize or mitigate them through the implementation of internal controls.

Which of the Following Describes the Internal Control Component "Risk