The internal control environment is the work atmosphere that a company sets for its employees and is designed to achieve reliability of financial reporting and compliance with laws, regulations and policies.

Question

Quizplus · Accepted Answer

The statement is correct. The internal control environment is designed to ensure the reliability of financial reporting and compliance with laws, regulations, and policies. It includes factors such as the company's management style, organizational structure, code of conduct, and communication channels.

The Internal Control Environment Is the Work Atmosphere That a Company