In the COSO framework, the term risk tolerance refers to A. Level of risk an organization is willing to accept. B. Acceptable variation with respect to a particular objective. C. Risk of an event after considering management response. D. Events that require no risk response.

a	Risk of an event after considering management response
b	Level of risk an organization is willing to accept
c	Events that require no risk response
d	Acceptable variation with respect to a particular objective

Question 7

Which is not considered an objective of internal control? A. Checking the accuracy and reliability of accounting data. B. Detecting management fraud. C. Encouraging adherence to managerial policies. D. Safeguarding assets.

a	Safeguarding assets
b	Encouraging adherence to managerial policies
c	Checking the accuracy and reliability of accounting data
d	Detecting management fraud

Question 8

The process of a Patent becoming out of date is called? A. Physical deterioration B. Depletion C. Obsolescence D. Amortization

a	Amortization
b	Depletion
c	Physical deterioration
d	Obsolescence

Question 9

Under straight line method of depreciation, annual depreciation is calculated: A. On original cost B. On balance amount at the end of year C. On residual value D. On Market Value

a	On balance amount at the end of year
b	On residual value
c	On original cost
d	On Market Value

Question 10

Control activities can be defined as: a. A means to an end b. Authorized procedures c. The particular category in which a control is placed d. The actions of people to help ensure that management directives necessary to address risks are carried out 

a	A means to an end
b	The particular category in which a control is placed
c	The actions of people to help ensure that management directives necessary to address risks are carried out
d	Authorized procedures