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NEW QUESTION: 3
Which of the following actions assures management that the organization's objectives are protected from the occurrence of risk events?
A. Internal control
B. Risk assessment
C. Risk management
D. Hedging
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Internal controls are the actions taken by the organization to help to assure management that the organization's objectives are protected from the occurrence of risk events. Internal control objectives are applicable to all manual or automated areas. Internal control objectives include:
Internal accounting controls- They control accounting operations, including safeguarding assets and

financial records.
Operational controls- They focus on day-to-day operations, functions, and activities. They ensure that

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Administrative controls- They focus on operational efficiency in a functional area and stick to

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Incorrect Answers:
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D: Risk assessment is a process of analyzing the identified risk, both quantitatively and qualitatively.
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Probability-establishing the likelihood of occurrence and reoccurrence of specific risks, independently

and combined.
Interdependencies-the relationship between different types of risk. For instance, one risk may have

greater potential of occurring if another risk has occurred. Or probability or impact of a situation may increase with combined risk.

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