Final answer:
The correct option that is not an element of a company's control environment among the given choices is (d) independent checks. The control environment includes the organization's ethical values, management's philosophy, and hiring policies. Independent checks are part of monitoring activities, not the control environment.
Step-by-step explanation:
The question revolves around identifying which option is not an element of a company's control environment. The control environment is a component of an organization's internal control system, established by management to provide the basis for carrying out internal control across the organization. It includes the integrity, ethical values, and competence of the company's people; management's philosophy and operating style; the way management assigns authority and responsibility and organizes and develops its people; and the attention and direction provided by the board of directors.
Options (a) audit committee participation, (b) management's philosophy, and (c) hiring policies are essential aspects of a control environment. The audit committee ensures that the company has appropriate processes in place and that it follows financial reporting and compliance guidelines. Management's philosophy affects the way control processes are designed and executed. Hiring policies are critical because they ensure that skilled and ethical employees are selected. However, (d) independent checks, although an important part of internal control, are part of monitoring activities rather than the control environment itself.
Please mention correct option in final answer: the correct answer is (d) independent checks, as this is not an element of a company's control environment.