Factors relating to the internal control environment that the auditor needs to consider when assessing control risk for purchase, payment and payroll transactions include all of these except:
A) integrity and ethical values.
B) management's commitment to competence.
C) design of substantive procedures.
D) assignment of authority and responsibility.

Question

Quizplus · Accepted Answer

The design of substantive procedures is not a factor relating to the internal control environment; it is part of the auditor's response to assessed risks, not a component of the company's internal controls. Factors like integrity and ethical values, management's commitment to competence, and the assignment of authority and responsibility are all aspects of the internal control environment that an auditor would consider.

Factors Relating to the Internal Control Environment That the Auditor