A strong and effective internal control environment can be enhanced by:
A) Financial statements that present fairly financial position and results of operations
B) Giving the internal auditors direct and unrestricted access to the audit committee
C) Having the internal auditors report to the external auditors
D) Having the external auditors report to the audit committee

Question

Quizplus · Accepted Answer

Giving internal auditors direct and unrestricted access to the audit committee ensures that they are independent and have the necessary authority to communicate any issues or concerns directly to top management, increasing the effectiveness of the internal control environment. The other options, while important, do not have as direct an impact on enhancing the internal control environment.

A Strong and Effective Internal Control Environment Can Be Enhanced