The control environment component of internal control was identified to have a number of different factors.Which of the following is NOT one of those factors?
A)Management's oversight responsibility, including its philosophy and operating style
B)The identification of sources of risk
C)The integrity and ethical values of the entity's people
D)The board of directors demonstrates independence from management and exercises oversight of internal controls.

Question

The control environment component of internal control was identified to have a number of different factors.Which of the following is NOT one of those factors?
A)Management's oversight responsibility, including its philosophy and operating style 
B)The identification of sources of risk 
C)The integrity and ethical values of the entity's people
D)The board of directors demonstrates independence from management and exercises oversight of internal controls.

Quizplus · Accepted Answer

The identification of sources of risk is not a factor of the control environment component of internal control. The other options listed (A, C, and D) are all factors of the control environment.

The Control Environment Component of Internal Control Was Identified to Have