A set of characteristics that helps to define a seriousness about employees' attitudes about the control activities in a company is referred to as
A) Management assertions.
B) Control environment.
C) Control risk assessment.
D) Functional responsibilities.

Question

Quizplus · Accepted Answer

The set of characteristics that helps to define a seriousness about employees' attitudes about the control activities in a company is referred to as the control environment. The control environment sets the tone of an organization and influences the control consciousness of its employees. It includes factors such as ethical values, leadership style, organizational structure, and human resource policies and practices that contribute to the effectiveness of internal control. Therefore, option B is the correct answer. Management assertions refer to the explicit or implicit claims made by management about the financial statements. Control risk assessment is the process of identifying, analyzing, and evaluating the risks that affect the achievement of the organization's objectives. Functional responsibilities refer to the roles and responsibilities of each department or function within an organization.

A Set of Characteristics That Helps to Define a Seriousness