Julinson Auditing, 1e Practice - Ch 6: Gaining an Understanding of the Client's Syst... TIME SP 00:01 Q6.32: Senior management analyzes how moving assembly operations from Mississippi to Wisconsin may impact the risk related to reporting responsibilities, given the differences in state laws. This follows which COSO principle? Check Performa Hard Easy Principle 3: Management establishes, with board of directors oversight, structures, reporting lines, and appropriate authorities and responsibilities in the pursuit of objectives. Principle 7: The organization identifies risks to the achievement of its objectives across the entity and analyzes risk as a basis for determining how the risks should be managed. Principle 12: The organization deploys control activities through policies that establish what is expected and procedures that put policies into actions. Principle 14: The organization internally communicates information, including objectives and responsibilities for internal control, necessary to support the functioning of internal control. About th Question Difficu Stud Study thi: Explain