Which of the Following Describes the Control Environment

question 120

Multiple Choice

Which of the following describes the control environment?

• A)Internal auditors monitor company controls to safeguard assets, and external auditors monitor the controls to ensure that the accounting records are accurate.
• B)The control environment is the "tone at the top" of the business.
• C)The control environment is designed to ensure that the business earns profit.
• D)A company must identify its risks.

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Definitions:

Cannibalization Potential

The likelihood that a new product will decrease sales of existing products offered by the same company.

Prototype

An initial model of a product used to test and validate design principles before full-scale production.

Full-scale Operating Model

A detailed representation of a business's functions and processes, enabling it to operate at full capacity and efficiency.

Business Analysis

The practice of identifying business needs and determining solutions to business problems, often through examining data and workflows.