The Control Environment Sets the Tone of an Organization and Influences

question 103

Multiple Choice

The control environment sets the tone of an organization and influences the control consciousness of its employees. The characteristics of an effective control environment are all of the following EXCEPT:

• A) Management communicates the importance of internal controls to all employees.
• B) A system is in place to monitor controls on a regular basis.
• C) Employees are held accountable for their performance.
• D) Employees don not have clearly defined responsibilities.

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Definitions:

Intangible Products

Goods that cannot be touched, measured, or physically counted, typically services or digital items.

Service Businesses

Companies that provide intangible products, such as entertainment, professional, repair, or maintenance services, to consumers or other businesses.

Operations

The day-to-day activities required for a business to function, involving production, logistics, and supply chain management.