"Tone at the top" refers to the:
A) thoroughness of policies for screening and electing the company's board of directors.
B) clarity of the company's written code of conduct which sets forth the expectations for personal ethical behavior to support the internal control structure.
C) environment in which management supports the internal control system by behaving ethically and making business decisions that emphasize its importance.
D) effectiveness of the company's internal audit function in monitoring the control environment.

Question

Quizplus · Accepted Answer

"Tone at the top" refers to the environment in which the management supports the internal control system by behaving ethically and making business decisions that emphasize its importance. This includes the attitude and actions of senior management and their commitment to ethical behavior and compliance with laws and regulations. The tone at the top sets the standard for the organization's ethical culture and ultimately affects the effectiveness of the internal control system. A and B are important components of the internal control system, but they do not specifically address the tone at the top. D is not directly related to the tone at the top but is an important component of internal control monitoring.

"Tone at the Top" Refers to The