Which of the following is not one of the elements of the control environment?
A) Process for recording transactions and preparing financial statements.
B) Presence of an internal auditing function.
C) A company's organizational structure.
D) Methods of assigning authority and responsibility.

Question

Quizplus · Accepted Answer

The process for recording transactions and preparing financial statements is not an element of the control environment, but rather a component of the control activities. The control environment includes factors such as the company's organizational structure, methods of assigning authority and responsibility, and presence of an internal auditing function.

Which of the Following Is Not One of the Elements