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What is the primary function of control activities in internal control?
What is the primary function of control activities in internal control?
- Identifying and assessing risks to the achievement of objectives
- Implementing specific actions to mitigate risks to objectives (correct)
- Providing necessary information for internal control responsibilities
- Establishing standards and procedures for internal control
What is the primary purpose of monitoring activities in internal control?
What is the primary purpose of monitoring activities in internal control?
- To identify and assess risks to the achievement of objectives
- To establish standards and procedures for internal control
- To ensure that internal control is effective over time (correct)
- To provide necessary information for internal control responsibilities
What is a limitation of internal control due to human factors?
What is a limitation of internal control due to human factors?
- Employee errors or biases (correct)
- Cost-benefit considerations
- Collusion between employees
- Management override of internal control
What is the relationship between the five components of internal control in the COSO framework?
What is the relationship between the five components of internal control in the COSO framework?
What is the primary purpose of the control environment in internal control?
What is the primary purpose of the control environment in internal control?
What is the primary purpose of information and communication in internal control?
What is the primary purpose of information and communication in internal control?
What is the primary focus of risk management in an organization?
What is the primary focus of risk management in an organization?
What is an indication of effective and efficient operations?
What is an indication of effective and efficient operations?
What is the purpose of Internal Controls over Financial Reporting (ICFR)?
What is the purpose of Internal Controls over Financial Reporting (ICFR)?
What is an example of a nonfinancial report that should be reliable?
What is an example of a nonfinancial report that should be reliable?
What is a crucial aspect of internal control?
What is a crucial aspect of internal control?
What are the three main objectives of internal control?
What are the three main objectives of internal control?
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