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:

Delphiniums

A genus of flowering plants known for their tall spikes of colorful flowers, commonly found in gardens.

Perfect Substitutes

Goods or services that can be used in exactly the same way and to the same extent, where one can completely replace the other in consumption.

Income Effect

The alteration in income for a person or the economy and the resulting influence on the demand for a certain good or service.

Substitution Effect

The economic principle indicating how consumers react to a change in price by substituting a more expensive item with a cheaper alternative.