Entity-level controls:
A) are pervasive.
B) affect only top management.
C) can be less than effective if application controls are strong.
D) All of the above.

Question

Quizplus · Accepted Answer

Entity-level controls are pervasive in nature, meaning they apply broadly across an organization and are not limited to specific processes or transactions. They are designed to set the tone at the top, influence the control environment, and ensure that information flows properly through the organization. They are not limited to affecting only top management, nor are they rendered less effective by strong application controls; instead, they complement application controls and other forms of control activities.

Entity-Level Controls