Which of the Following Indicates a Strong Internal Control Environment

question 19

Multiple Choice

Which of the following indicates a strong internal control environment?

• A) the internal audit group reports to the audit committee of the board of directors
• B) there is no segregation of duties between organization functions
• C) there are questions about the integrity of management
• D) adverse business conditions exist in the industry

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Definitions:

Average Tax Rate

The proportion of total income paid in taxes, calculated by dividing the total tax amount by the taxpayer's total income.

Taxable Income

The amount of an individual's or business's income used to calculate how much tax they owe to the government in a given year.

Total Tax

The annual sum of all taxes owed by an individual or corporation, including federal, state, and local taxes, regardless of deduction or credit eligibility.

Taxable Income

The amount of income that is subject to income tax after deductions and exemptions.