The 2013 COSO Report identifies five components for an effective internal control system.Which of those five establishes the tone of a company and influences the control awareness of the company's employees?
A)Control procedures
B)Control environment
C)Control activities
D)Information and communication

Question

Quizplus · Accepted Answer

The control environment is the foundation of the five components of internal control, setting the tone of an organization and influencing the control awareness of its people. It includes the integrity, ethical values, and competence of the company's people; management's philosophy and operating style; the way management assigns authority and responsibility, and organizes and develops its people; and the attention and direction provided by the board of directors.

The 2013 COSO Report Identifies Five Components for an Effective