Which one of the following components of the system of internal controls sets the tone for the organization?
A)control risk assessment
B)control environment
C)information and communication
D)monitoring

Question

Quizplus · Accepted Answer

The control environment is the foundation for the other components of the system of internal controls. It sets the tone for the organization by establishing a culture of integrity, ethical values, and accountability. This component includes factors such as management's philosophy and operating style, the organizational structure, and the competence and ethical values of personnel. Control risk assessment, information and communication, and monitoring are all important components, but they are built upon the foundation of the control environment.

Which One of the Following Components of the System of Internal