The component of internal control that identifies internal and external factors that could prevent a company's objectives from being achieved is:

A) Monitoring.

B) Information and communication.

C) Risk assessment.

D) Control activities.

Answer: Risk assessment.

A framework for designing an internal control system is provided by the:

A) Committee of Sponsoring Organizations.

B) Financial Accounting Standards Board.

C) Securities and Exchange Commission.

D) International Accounting Standards Board.

Answer: Committee of Sponsoring Organizations.

The component of internal control that includes the policies and procedures that help ensure that management's directives are being carried out is:

A) Monitoring.

B) Information and communication.

C) Risk assessment.

D) Control activities.

Answer: Control activities.