Quiz #11

I. Multiple choice

1. A
2. D
3. B
4. C
5. B
6. D
7. D
8. B
9. B
10. B
11. B
12. B
13. A
14. C
15. A

II. Essay II

The control environment is the most integral element of internal control as it sets the
foundation which ensures smooth running of other controls. The Control environment
element provides discipline and structure to all participants and stakeholders and clearly sets
out factors that promote efficiency of other internal control elements. These factors include:

 Integrity & ethical values.

 Management's philosophy as well as the operating style.
 Authority & responsibility.
 Human resources.
 Organizational structure.
 Financial reporting competencies.