Which Element of Internal Control Deals with the Establishment of a Company's

question 47

Multiple Choice

Which element of internal control deals with the establishment of a company's policies?

• A)Control environment
• B)Control activities
• C)Information and communication
• D)Risk assessment

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Definitions:

Categorization-By-Features

The process of organizing objects or concepts into groups based on shared characteristics or attributes.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment, emphasizing logic, rationality, and skepticism.

Preattention

A cognitive process allowing the brain to focus on relevant stimuli while ignoring irrelevant information.

Base-Rate Information

Fundamental statistics or probabilities that are used for reference or as a baseline in decision-making processes.