US CMA Part 1 · Chapter 5 · Question 23 of 23
Under the COSO 2013 framework, considering the potential for fraud when assessing risks to the achievement of objectives is a principle within which component?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Risk assessment
Explanation
Principle 8 of the 2013 COSO framework, within the risk assessment component, states that the organization considers the potential for fraud, including incentives, opportunities and rationalizations, when assessing risks to the achievement of objectives.
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