Question

The Control Environment component of the COSO Internal Control Integrated Framework is also called?

1) Privacy by design
2) Tone at the top
3) Data erasure
4) Operational compliance

Answer 1

The Control Environment component of the COSO Internal Control Integrated Framework is referred to as 'Tone at the top,' which reflects the ethical environment and corporate culture established by senior management.

Step-by-step explanation:

The Control Environment component of the COSO Internal Control Integrated Framework is crucial as it sets the foundation for discipline and structure within an organization. The correct term for the Control Environment is commonly referred to as 'Tone at the top'. This phrase indicates the ethical atmosphere and corporate culture that senior management establishes within the company, influencing the control consciousness of its people. It encapsulates the governance and ethics, setting the example that can permeate through all levels of the organization. The tone at the top helps to foster a positive corporate culture where employees understand the importance of internal control and are more likely to comply with control policies and procedures.