Question

Entity-level controls can have a pervasive effect on the entity's ability to meet the control criteria. Which one of the following is not an entity-level control?

A. Controls to monitor the inventory taking process.
B. Management's risk assessment process
C. Controls to monitor results of operations.
D. The period-end financial reporting process

Answer 1

Entity-level controls are controls that have an impact on the entity as a whole, rather than being specific to a particular transaction or account. Controls to monitor the inventory taking process is not an entity-level control.

Step-by-step explanation:

Entity-level controls are controls that have an impact on the entity as a whole, rather than being specific to a particular transaction or account. They are designed to address risks that could affect multiple areas of the organization. From the given options, Controls to monitor the inventory taking process is not an entity-level control because it is more focused on a specific operational process rather than the broader entity-level risks.