The 1992 COSO report identifies five components for an effective internal control system.Which of those five establishes the tone of a company and influences the control awareness of the company's employees?
A)Control procedures
B)Control environment
C)Control activities
D)Information and communication

Question

Quizplus · Accepted Answer

The component that establishes the tone of a company and influences the control awareness of the company's employees is the Control environment. This includes the organization's culture, management philosophy, and operating style. It sets the tone for the company's internal control system, and it is the foundation for all other components of internal control.

The 1992 COSO Report Identifies Five Components for an Effective