Management's Attitude Toward Aggressive Financial Reporting and Its Emphasis on Meeting

question 87

Multiple Choice

Management's attitude toward aggressive financial reporting and its emphasis on meeting projected profit goals most likely would significantly influence an entity's control environment when:

• A)external policies established by parties outside the entity affect its accounting practices.
• B)management is dominated by one individual.
• C)internal audit personnel have direct access to the board of directors and the entity's management.
• D)the audit committee is active in overseeing the entity's financial reporting policies.

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Definitions:

Right Amount

The optimal quantity or degree of something that achieves a desired outcome or condition.

Action Plan

Describes how you are going to reach your goal.

Goal Setting

The act of identifying specific, measurable, achievable, relevant, and time-bound objectives to guide personal or organizational progress.

Action Plan

A detailed strategy outlining the steps necessary to achieve a particular goal or objective, including timelines and resources needed.