ACCA AA · Chapter 8 · Question 2 of 12
Which of the following is an element of the control environment?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Management's commitment to integrity and ethical values
Explanation
The control environment reflects the attitudes, awareness and actions of management and those charged with governance, often described as the 'tone at the top'. Bank reconciliations, sequential numbering and passwords are control activities.
More Internal control systems MCQs
- Q4Which control would best address the objective that goods are only supplied to customers with acceptable credit ratings?
- Q5Which control most directly helps to ensure that all goods dispatched to customers are invoiced?
- Q6What is the main purpose of matching a supplier invoice to the related purchase order and goods received note before payment?
- Q7Which control would best prevent fictitious employees from being added to the payroll?
- Q8Which of the following controls would be most effective in reducing the risk of theft of high-value inventory from a warehouse?