The overall attitude and awareness of an entity's board of directors concerning the importance of the client's internal control usually is reflected in its:
A)computer-based control activities.
B)system of separation of duties.
C)control environment.
D)safeguards over access to assets.

Question

Quizplus · Accepted Answer

The overall attitude and awareness of an entity's board of directors concerning the importance of the client's internal control is reflected in its control environment, which sets the tone for the organization's internal control system. The control environment includes factors such as the board's oversight, management's philosophy and operating style, organizational structure, and the company's ethical values and culture. Computer-based control activities, system of separation of duties, and safeguards over access to assets are specific aspects of internal control that are influenced by the control environment. However, the control environment encompasses the overall attitude and awareness of the board of directors, making it the best choice.

The Overall Attitude and Awareness of an Entity's Board of Directors