Management's philosophy and operating style are part of which component of internal control?
A) Control activities
B) Control environment
C) Information and communication
D) Monitoring

Question

Quizplus · Accepted Answer

Management's philosophy and operating style are part of the control environment, which is the foundation of the internal control system. The control environment sets the tone of an organization, influencing the control consciousness of its people. It includes the integrity and ethical values of the organization, the commitment to competence, the board of directors or audit committee, human resource policies and practices, and management's philosophy and operating style.

Management's Philosophy and Operating Style Are Part of Which Component