Explain how inherent risk, control risk and detection risk are interrelated. (AICPA adapted)

Q: Describe the importance of adequate internal controls.

A: Definition:   Internal control: Internal control is a process that ensures continuous reliability fo…

Q: describe the objective of fi nancial statements and the importance of fi nancial reporting standards…

A: The security analysis is the process of estimating the value of the securities (like shares, bonds,…

Q: Hedging is used to deal with three areas of risk exposure. Which are those risks? Name them.

A: Following are the three areas of risk exposure: Transaction risk: Transaction risk alludes to the…

Q: Which of the following is an element of the Oa. Risk assessment plans Ob. Managements' operating…

A: The right answer is b Management's operating styles

Q: Explain implementation and maintenance of adequate internal controls.

A: Internal Controls: Internal controls are the controls established within an organization to check…

Q: Describe how the nature of evidence used to evaluate the control environment differs from the nature…

A: ANSWER:- For many control activities, documentation of their performance is more objectively…

Q: explain the relationship between hedging and measuring exposure.

A: Hedging is basically a type of risk management strategy through risk can be reduced significantly…

Q: Describe the benefits of internal control report.

A: Internal Control Report:   An internal control report is the end result of the conducting an…

Q: Define certainty equivalent method

A: Certainty equivalent method: Certainty equivalent method is a risk analysis technique used in…

Q: Which of the following is the most likely to be used to document risks, responsible parties, and…

A: Risk Management -Risk management is a methodical approach to recognizing, evaluating, and reducing…

Q: reporting of control procedures required

A: There are few reasons why control measures are required in reporting. Some of them are as below.

Q: Mention and describe some FASB concepts, principles, standards, and rules and how they differ from…

A: Given: The concept of FASB and their differences.

Q: What are the three steps to assessing internal control risk?

A: Internal control risk is the possible exposure that an organization may have due to defects or…

Q: List and define the different major categories of risk events

A: Risk can be defined as the variability of returns. When the variability of the return is high, in…

Q: Which of the following is not a component of internalcontrol?a. Environmental assessmentb. Control…

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

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…