Which of the following would the auditor consider as part of the control environment related to debt obligations?

Question

Quizplus · Accepted Answer

The independence of the board of directors with respect to long-term financing is a key factor in the control environment related to debt obligations. This is because the board has the responsibility to oversee the company’s financial decisions, including the decision to issue debt. If the board is not independent, it may not act in the best interest of the company and its stakeholders when making these decisions. The other options listed are not directly related to the control environment for debt obligations.

Which of the Following Would the Auditor Consider as Part