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a. An organization may accept the risk if it is prepared to absorb or mitigate the impact of the risk. b. An organization may take the risk but tries to lower the impact and possibility of occurrence of the risk. c. An organization may take the risk but not the return

a. An organization may accept the risk if it is prepared to absorb or mitigate the impact of the risk. b. An organization may take the risk but tries to lower the impact and possibility of occurrence of the risk. c. An organization may take the risk but not the return

Auditing: A Risk Based-Approach (MindTap Course List)
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter7: Planning The Audit: Identifying, Assessing, And Responding To The Risk Of Material Misstatement
Section: Chapter Questions
Problem 9RQSC: How does inherent risk relate to internal controls? Why is it important to assess inherent risks of...
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Which is not an organization's response to risks? *

a. An organization may accept the risk if it is prepared to absorb or mitigate the impact of the risk.
b. An organization may take the risk but tries to lower the impact and possibility of occurrence of the risk.
c. An organization may take the risk but not the returns that come with it.
d. An organization may opt not to take the risk by avoiding the activity with associated risk.

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