Auditing and Accounting Cases: Investigating Issues of Fraud and Professional Ethics 3rd Edition by Jay Thibodeau,Deborah Freier

تمرين 4

Consult Paragraphs 25 of PCAOB Auditing Standard No. 5 and/or AU Section 319.34. Define what is meant by control environment. Why does the "tone at the top" have such an important effect on internal control over financial reporting? Based on the case information, do you believe that the proper "tone at the top" was established at Qwest? Why or why not?