Internal controls belong to which risk response category?
A.
Reduction.
B.
Avoidance.
C.
Sharing.
D.
Acceptance.
The Answer Is:
A
This question includes an explanation.
Explanation:
Internal controls are mechanisms put in place to reduce the probability or impact of risks affecting the organization ' s objectives. They do not eliminate risks entirely (which would be avoidance) nor do they transfer or share the risk (as in risk sharing); rather, they mitigate risks to more acceptable levels.
Institute of Internal Auditors (IIA) - Guidance on Risk Assessment in Practice
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