Which of the following components of the control environment define the existing lines of responsibility and authority?
A)Organizational structure
B)Management philosophy and operating style
C)Human resource policies and practices
D)Management integrity and ethical values

Question

Quizplus · Accepted Answer

The organizational structure dictates the roles and responsibilities of individuals and groups within an organization, and establishes the hierarchical authority and reporting relationships. Therefore, it defines the lines of responsibility and authority. Management philosophy and operating style refer to the overall approach and culture of a company, human resource policies and practices focus on the recruitment, compensation, and training of employees, while management integrity and ethical values relate to the ethical tone set by top management.

Which of the Following Components of the Control Environment Define