Which of the Following Indicates a Strong Internal Control Environment

question 19

Multiple Choice

Which of the following indicates a strong internal control environment?

• A) the internal audit group reports to the audit committee of the board of directors
• B) there is no segregation of duties between organization functions
• C) there are questions about the integrity of management
• D) adverse business conditions exist in the industry

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Definitions:

Sector Bargaining

A form of labor negotiations where unions and employers across a specific sector of the economy (like manufacturing, health care, or education) negotiate collective bargaining agreements that cover all workers and employers within that sector.

Industry-Wide Bargaining

The process of collective negotiations conducted between labor unions and employers across an entire industry, rather than with a single employer.

Collective Bargaining

The process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working conditions.

Codetermination

A practice where workers have a role in the management of companies, often through representation on corporate boards.