The control environment does NOT include:
A)a corporation's code of ethics.
B)prohibition of bribes and kickbacks.
C)risk assessment.
D)avoidance of transactions that involve a conflict of interest.

Question

Quizplus · Accepted Answer

The control environment refers to the overall tone set by management and the board of directors to promote effective internal control. Risk assessment, avoidance of transactions that involve a conflict of interest, and prohibition of bribes and kickbacks are all elements of the control environment. However, a corporation's code of ethics is not an element of the control environment, but rather a specific component of the overall internal control system.

The Control Environment Does NOT Include