Entity-level controls involve _______.
A)all five components of internal controls
B)all four components of internal controls
C)all auditor and client controls
D)all controls recommended by the internal audit function

Question

Quizplus · Accepted Answer

Entity-level controls are broad controls that affect all five components of internal controls: the control environment, risk assessment, control activities, information and communication, and monitoring activities. These components are part of the framework established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) to help organizations design and implement effective internal controls. Entity-level controls set the tone at the top and are foundational to an organization's internal control system.

Entity-Level Controls Involve _______