1. How does internal control impart on the achievement of organization’s goals? 2. Why risk management process is essential in addressing risks that the organization is facing? 3. Differentiate qualitative and quantitative assessment of risks.

1. How does internal control impart on the achievement of organization’s goals? 2. Why risk management process is essential in addressing risks that the organization is facing? 3. Differentiate qualitative and quantitative assessment of risks.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: In terms of an audit, define " substantive strategy " and " reliance strategy ". How do the…

A: Audit strategy refers to a strategy that guides the audit plan. It refers to the combination of…

Q: What are the major steps in the audit team’s assessment of control risk in an IT environment?

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: Name two risk management models and how any of them can resolve an operational risk problem.

A: Risk management is that the process of recognising, analysing, and accepting or mitigating…

Q: What are analytical procedures? Substantive tests designed to assess control risk Substantive tests…

A: Analytical procedures are used in proper evaluations of financial information by having an analysis…

Q: f Which of the following is NOT part of the methodology used in designing substantive tests of…

A: Substantive tests are procedures performed by auditors to detect material misstatements in the…

Q: Information about a company’s objectives, strategies, and signifi cant risks would mostlikely be…

A: The purpose of management commentary is to provide the users with various kinds of information which…

Q: Internal control system is effective in managing risk, who is responsible to ensure the…

A: Internal control system in an organisation means ensuring the fulfilment of objectives of the…

Q: Discuss the importance of an internal risk assessment and auditing process in relation to Washington…

A: An internal risk assessment is the process by which an organization identifies and evaluates…

Q: Which of the following are true regarding internal auditors and the adequacy of an organization’s…

A: Answer: I. Internal auditors must understand the risk assessment process and the tools used to make…

Q: The internal audit, which is a tool to evaluate the working of each management function, It refers…

A: Internal audit: Internal Audit is a department or a corporation of individuals within a corporation…

Q: Must the overall understanding of internal control always be followed by assessment and…

A: Definition: Internal control: Internal control is a process which ensures continuous reliability of…

Q: Share at least 2 examples that compare how organizations' different structures, risk tolerances, and…

A: Risk management planning: A risk management plan is a document that a project manager prepares to…

Q: Explain the equation HxP=R Name each component What is the significance of each component? How…

A: Since more three sub parts are posted at a time, the answer for first three sub-parts is only…

Q: Discuss the importance of monitoring and reporting on the institution's compliance with its ALM…

A: Answer Assets Liability Management(ALM) - is used for manage financial Risk as a result of mismatch…

Q: Performance Principle. Identify how each of the following statements relates to the performance…

A: Performance Principle The guiding principle known as the performance principle defines the general…

Q: What are objectives? What three categories of objectives are set forth in the COSO framework?

A: COSO ERM framework defines internal control in an organisation as “a. process, effected by an…

Q: Provide the key factor auditors will have to review when deciding on the inherent risk within the…

A: Answer:- Inherent risk meaning:- The risk created by a financial statement inaccuracy or omission…

Q: Explain the connection between business risk and Audit risk model (inherent risk x control risk x…

A: Inherent risk is the risk which is present in the organization before applying any control. Audit…

Q: The purpose of ____________ is to help manage and control risk appropriately rather than to…

A: Internal accounting is the process of preparation of accounting for business transactions. Internal…

Q: What are the major steps in the audit team's assessment of control risk in an IT environment?

A: Introduction: Control risk is the possibility that financial statements would be significantly…

Q: Reasonable assurance that the objectives of internal control are achieved depends on the competence…

A: The question is related to Auditing. Resonable assurance means a high level of assurance regarding…

Q: a. what it is b. where and when it is used by the auditor c. how it affects the work of the auditor…

A: a. What it is The Audit Risk Model is a conceptual tool used by auditors to evaluate and manage the…

Q: Very behavioral and very qualitative aspects are advantages of .... O a. Financial control O b.…

A: Very behavioral and very qualitative aspects means to have a working environment where everyone are…

Q: Describe one type of systematic risk and one type of unsystematic risk and then explain how a…

A: Systematic risk is risk of market factors which cannot be diversified by business or investor. It is…

Q: one of the components of internal control is the control activities;which are the policies and…

A: Control activities- These are the rules and processes that assist management in attaining its…

Q: Describe how internal control systems help organizations achieve objectives and respond to risks.

A: Internal control systems are a set of procedures and mechanisms put in place by an organization to…

Q: Discuss the auditor's risk assessment procedures for assessing control risk, and provide specific…

A: Risk assessment means to manage the risks related to the organization and taking corrective actions…

Q: internal auditors and the adequacy of an organization’s risk management process

A: Statement I is true because the duties of internal auditors include conducting risk assessments. In…

Q: Which of the following is not one of the five key steps within the ERM process? a. Risk response b.…

A: Risk acceptance isn't a distinct step within the ERM process, but rather falls under the umbrella of…

Q: Below are events, for each event, identify the type of risk the event entails, classify your…

A: Systematic and unsystematic risk Risk can be categorized as systematic and unsystematic risk.…

Q: hat are the primary tasks and Education, Training, & Certification, the primary industries of a risk…

A: Risk management is a broadly applicable business concept that is widely recognized as vital to an…

Q: Choose from the following the best definition of risk identification. Decide how the company will…

A: Identifying existing risks and their outcomesExplanation:Risk identification is the process of…

Q: 4. Overall risk management arrangements are the main preoccupation of the internal auditor who is…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Question

1. How does internal control impart on the achievement of organization’s goals?

2. Why risk management process is essential in addressing risks that the organization is facing?

3. Differentiate qualitative and quantitative assessment of risks.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The exercise of integrating a company’s functional strategies helps the team explicitly recognize which risks are on its immediate critical path and devise near-term plans for mitigating these risks in sequence True False
Describe some regulatory actions that have influenced theevolution of risk management.
Which of the following are true regarding internal auditors and the adequacy of an organization's risk management process I. Internal auditors must understand the risk assessment process and the tools used to make the assessment II. Internal auditors should determine the level'of risks acceptable to the organization III. Internal auditors need to be satisfied that the key objectives of risk management processes are being met IV. Internal auditors should evaluate management's risk processes the same way they analyze risk when planning an engagement O , II, III and IV O None of the choices OI, Il and III only O l and II only O l and III only
Who has primary responsibility for overseeing the establishment, implementation, and evaluation of risk management and controls? I Operating managers. B) Internal auditors. External auditors. Senior management
II. The following list presents various internal control strengths (S) or risks (R) that may be found
Identify how each of the following statements relates to the performance principle by considering which element(s) of the principle are related to that statement. (A statement may be related to more than one element.) Use the following elements in providing your response: Reasonable assurance • Planning and supervision • Materiality ⚫ Risk assessment • Audit evidence a. Evaluating the effectiveness of the client's internal control in preventing or detecting misstatements. b. Obtaining an understanding of the client's business and industry. c. Acknowledging that the risk of failing to detect a material misstatement cannot be reduced to zero. d. Obtaining confirmations from the client's customers as to the ending balances in accounts receivable. e. Preparing a written audit plan. f. Designing audit procedures to identify misstatements that would have a significant effect on financial statement users' decisions. g. Considering the likelihood that the account balance contains a material…
Aside from documenting his/her understanding of the internal control structure, the auditor should also document the assessed level of control risk. True or false? why?
ABOUT AUDITING The process of selecting and developing policies and procedures to help mitigate risks to an acceptable level is part of which component in the COSO Framework? a. Control environment b. Risk assessment c. Control activities d. Monitoring
In which element of Internal Control are personnel policies included: Control Procedures Control Environment O Risk Assessmenet Information and Communication O Monitoring
14. Which of the following tasks that the auditor may perform in relation to Risk Management without any reservation? Group of answer choices Facilitating identification and evaluation of risks Setting the risk appetite Giving assurance on the risk management process and provide recommendation Taking accountability for risk management
Audit procedures designed to evaluate the operating effectiveness of controls to prevent, detect, or correct material misstatements are known as organizational structure. O control testing. O commitment to competence. O management's philosophy and operating style.
Risk is defined by some as the possiblity of danger or the possible exposure to danger. Whereas, risk management is viewed as a systematic process of assessing the potential risk to a business which incorporates identifying, evaluating, monitoring/tracking and reporting risk to the board/senior management. Risk management processes are evolving with the focus on all of the following EXCEPT: Question 1Answer a. Development of regulator guidelines for imposing risk-based techniques to reduce systemic risks. b. Examining the different components of the risk management framework. c. Emergence of new organizational processes for better integrating these advances. d. Developing risk-based techniques to meet risk-based capital requirements