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:

Corporate Partner

A business entity that collaborates with another company in a strategic alliance or partnership, often to achieve mutual business objectives.

Transportation Services

Services that provide the movement of people, animals, or goods from one location to another via various modes such as buses, taxis, trains, and airplanes.

Legislative History

The documents and records, including committee reports and debates, generated during the process of a bill becoming law, used to understand lawmakers' intentions.

Courts Use

The application and utilization of judicial systems to interpret and apply laws, resolve disputes, and administer justice.