The Control Environment Means Management's Overall Attitude, Awareness and Actions

question 4

Essay

The control environment means management's overall attitude, awareness and actions regarding internal control and its importance in the entity. Identify and describe four factors that constitute part of the control environment.

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Definitions:

Cash Dividends

Payments made by a company to its shareholders from its profit or retained earnings.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives.

Operating Activities

Transactions and other events that are not investing or financing activities, relating to the primary operations of a business.

Financing Activities

Activities that result in changes in the size and composition of the equity capital and borrowings of a company.