The control environment also excludes:

Question

Quizplus · Accepted Answer

A passive board of directors and audit committee would weaken the control environment as they are responsible for overseeing and ensuring effective control processes within the organization. A strong control environment requires an active and engaged board of directors and audit committee.

Additionally, choices A, C, and D all contribute to the effectiveness of the control environment. Integrity and ethical values set the tone for the organization's culture and behavior, periodic assessment of the organizational structure helps to ensure that controls are designed and operating effectively, and human resource policies and practices that facilitate a good control environment help to ensure that employees are motivated and incentivized to comply with controls.

The Control Environment Also Excludes