Organizations with a Good Control Environment Are Able to Document

question 17

Multiple Choice

Organizations with a good control environment are able to document their positive "tone at the top" with a clear code of ethics.How would the auditor include the presence of such a code of ethics in the risk assessment process?

• A)increase inherent risks associated with violations of laws and regulations
• B)lower inherent risks associated with violations of laws and regulations
• C)increase control risks associated with violations of laws and regulations
• D)lower control risks associated with violations of laws and regulations

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Definitions:

Firm Reliance

A strong dependency or trust in something or someone, often in the context of business or personal relations.

Informal Leadership

Leadership that emerges within a group naturally, without a formal title, based on personal qualities, respect, or expertise, influencing group dynamics and direction.

Special Skills

Unique or high-level abilities that set individuals apart and enable them to perform specific tasks effectively.

LMX Relationships

Leader-Member Exchange theory, which focuses on the individual relationships between managers and members of their team, and its impact on performance.