CFE – Fraud Prevention and Deterrence — Question 60

Which of the following is one of the components of the Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) Enterprise Risk Management—Integrating with Strategy and Performance?

Answer options

• A. Review and revision
• B. Risk tolerance
• C. Event avoidance
• D. Compliance

Correct answer: B

Explanation

The correct answer is B, as risk tolerance is a key component of the COSO framework that defines the level of risk an organization is willing to accept. Options A, C, and D do not accurately reflect the specific components outlined in the COSO's guidelines.