Question

Actions, policies, and procedures that reflect the overall attitude of management, directors, and owners of the entity about internal control relate to which of the following internal control components?

(1) Control environment
(2) Information and communication
(3) Risk assessment
(4) Monitoring

Answer 1

1) Control environment. The actions, policies, and procedures that reflect the overall attitude of management, directors, and owners of an entity about internal control relate to the Control environment component of internal control.

Step-by-step explanation:

The actions, policies, and procedures that reflect the overall attitude of management, directors, and owners of an entity about internal control relate to the Control environment component of internal control.

The control environment represents the foundation for all other components of internal control and sets the tone for the organization's internal control system. It includes factors such as management's philosophy and operating style, the organization's commitment to integrity, and the emphasis on ethical values and competence.

For example, if the management of a company emphasizes a culture of integrity and ethical behavior, and demonstrates this through its actions and policies, it establishes a strong control environment that promotes effective internal control.