Which of the Following Is Not an Element of the Internal

question 106

Multiple Choice

Which of the following is not an element of the internal control environment?

• A) management philosophy and operating style
• B) organizational structure of the firm
• C) well-designed documents and records
• D) the functioning of the board of directors and the audit committee

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Definitions:

Hybrid Method

An accounting technique that combines elements of both cash-based and accrual accounting to prepare financial statements.

Partnership

A legal arrangement where two or more individuals or entities engage in business together, sharing profits, losses, and liability.

Withdrawal

The act of removing funds from a bank account or investment.

Goodwill

An intangible asset representing the excess value paid for a company over its book value during an acquisition, attributable to factors like reputation, brand, or customer relations.