Which of the Following Describes the Environment in Internal Control

question 221

Multiple Choice

Which of the following describes the environment in internal control?

• 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 environment is the "tone at the top" of the business.
• C) The environment is designed to ensure that the business earns profit.
• D) A company must identify its risks.

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Definitions:

Mortgage

A legal agreement where property is used as security for a loan, with the condition that the conveyance of title becomes void upon repayment of the loan.

Consideration

Something of value which is given by each party to a contract that induces them to enter into the agreement to exchange mutual performances.

HTC Smartphone

A line of smartphones produced by HTC Corporation, known for its innovation in mobile technology and design.

Recession

A significant decline in economic activity across the economy, lasting longer than a few months, often visible in GDP, real income, employment, and other indicators.