Management's philosophy and operating style have to do with how the business is operated and are not part of the internal control environment.

Question

Quizplus · Accepted Answer

Management's philosophy and operating style are actually a key component of the internal control environment. They affect the tone and culture of the organization, which sets the foundation for effective internal control. Therefore, management's philosophy and operating style are an essential element of an effective internal control system.

Management's Philosophy and Operating Style Have to Do with How