Which of the following describes the control environment?
A)The control environment is designed to ensure that the business's goals are achieved.
B)Internal auditors monitor company controls to safeguard assets, and external auditors monitor the controls to ensure that the accounting records are accurate.
C)A company must identify its risks.
D)The control environment is the 'tone at the top' of the business.

Question

Quizplus · Accepted Answer

The control environment is often referred to as the "tone at the top," which encompasses the overall attitude, awareness, and actions of the board of directors and management regarding the internal control system and its importance to the entity.

Which of the Following Describes the Control Environment