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

Question

Quizplus · Accepted Answer

The control environment is the overall attitude, awareness, and actions of the company's management and employees regarding internal controls, risk management, and ethical behavior. It is referred to as the 'tone at the top' because it sets the standard for the organization's internal control system. Options A and D are incorrect because they describe monitoring and achieving goals rather than the control environment, and Option B is also only a part of the risk management process, not specifically related to the control environment.

Which of the Following Describes the Control Environment