The component of internal control, identified in the COSO report, that sets the tone of an organization and includes the consciousness of its employees is:
A)Risk Assessment
B)Control Activities
C)Control Environment
D)Information and Communication

Question

Quizplus · Accepted Answer

The component of internal control that sets the tone of an organization and includes the consciousness of its employees is the Control Environment, as stated in the COSO report. This includes the integrity, ethical values, and competence of the organization's employees, as well as the structure of the organization and its commitment to accountability. Risk Assessment, Control Activities, and Information and Communication are other components of internal control identified in the COSO report, but they do not specifically address the consciousness of employees and the overall culture of the organization.

The Component of Internal Control, Identified in the COSO Report