CIMA BA4 · Chapter 7 · Question 4 of 10
Which of the following best describes the 'control environment'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The overall attitude, awareness and actions of directors and management regarding internal control, including 'tone at the top'
Explanation
The control environment is the foundation of internal control, covering management's philosophy and operating style, integrity and ethical values, organisational structure and commitment to competence. Reconciliations and authorisations are control activities. IT systems and auditor assessments are not the control environment itself.
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