All of the Following Factors Influence the State of an Organization's

question 66

Multiple Choice

All of the following factors influence the state of an organization's control environment EXCEPT:

• A) An inconsistent or unfair employee performance evaluation, compensation, and promotion system.
• B) Whether the code of conduct and ethics policy are communicated to employees and enforced by management in a sound and consistent manner.
• C) Employees are held accountable for their performance.
• D) Whether management emphasizes and values competence, integrity, and ethical behavior.

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Definitions:

Unmodified Opinion

An auditor's report that concludes the financial statements of an entity present fairly its financial position, without any reservations.

Management Discussion and Analysis

A section in an annual report where management provides an overview of the previous period's operations, current financial status and future outlook.

Dividends per Share

The amount of money a company pays out to its shareholders for each share they own during a specific period.

Earnings per Share

A financial ratio that divides a company's net profit by the number of its outstanding shares, indicating how much money each share makes.