Which of the following is an attribute of the internal control component-monitoring of controls?
A) Internal auditors monitor company controls to safeguard assets, and external auditors evaluate the controls to ensure that the accounting records are accurate.
B) Monitoring of controls is the "tone at the top" of the business.
C) Monitoring of controls is designed to ensure that the business's goals are achieved.
D) Monitoring of controls deals with identification and assessment of business risks.

Question

Quizplus · Accepted Answer

Monitoring of controls involves both internal and external audits to ensure that the controls are effective in safeguarding assets and ensuring the accuracy of accounting records. This is distinct from the "tone at the top," which relates to the ethical climate set by management (B), the broader goal of achieving business objectives (C), and the identification and assessment of risks, which is part of the risk assessment component of internal control (D).

Which of the Following Is an Attribute of the Internal