Final answer:
Integrity and ethical values, as mentioned in option B, are considered a control environment factor by the COSO definition of internal control, embodying the fundamental principles set by the organization for control across the entity.
Step-by-step explanation:
Among the options provided, the one that is considered a control environment factor by the COSO definition of internal control is B) Integrity and ethical values. The COSO framework identifies the control environment as the foundation for all other components of internal control, setting the overall tone of an organization. It includes the governance and management functions and the attitudes, awareness, and actions of those charged with governance and management toward the entity's internal control and its importance in the entity.