The third component of COSO's internal control model is risk assessment.Part of risk assessment is to identify threats to companies.If a company does the right things in the wrong way,this is known as
A)a strategic threat.
B)an operating threat.
C)a financial threat.
D)an information threat.

Question

Quizplus · Accepted Answer

When a company does the right things in the wrong way, it creates operating threats. Operating threats arise due to internal control weaknesses or ineffective implementation of policies and procedures. This can result in inefficiencies, errors, and fraud within the company. Therefore, the best choice is B.

The Third Component of COSO's Internal Control Model Is Risk