Which of the Following Describes the Environment in Internal Control

question 221

Multiple Choice

Which of the following describes the environment in internal control?

• A) Internal auditors monitor company controls to safeguard assets, and external auditors monitor the controls to ensure that the accounting records are accurate.
• B) The environment is the "tone at the top" of the business.
• C) The environment is designed to ensure that the business earns profit.
• D) A company must identify its risks.

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Definitions:

Price of Steel

The cost per unit of steel, which can fluctuate based on market demand, supply conditions, and raw material prices.

Ford

an American multinational automaker known for revolutionizing assembly line production for automobiles.

Factor of Production

A Factor of Production is an input used in the production of goods and services, such as land, labor, capital, and entrepreneurship.

Demand

Refers to the quantity of a product or service that consumers are willing and able to purchase at various prices over a given period of time.