An organization engages in questionable financial reporting practices due to pressure to meet unrealistic performance targets. Which internal control component is most negatively affected?
A) Monitoring.
B) Control activities.
C) Risk assessment.
D) Control environment.

Question

Quizplus · Accepted Answer

The control environment is most negatively affected because it encompasses the organization's culture, values, and integrity, which are compromised when there is pressure to engage in unethical practices.

An Organization Engages in Questionable Financial Reporting Practices Due to Pressure