The component of an internal control system that concerns itself with the way a company's management assigns authority and responsibility is called:
A)Monitoring
B)Control environment
C)Risk assessment
D)Information

Question

Quizplus · Accepted Answer

The control environment is the foundation of an internal control system, which includes the organization's culture, philosophy, and operating style, along with the way management assigns authority, responsibility, and organizes and develops its people. This environment sets the tone of an organization, influencing the control consciousness of its people.

The Component of an Internal Control System That Concerns Itself