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NEW QUESTION: 1
Which of the following is not a control environment factor?
A. Hiring and advancement policies.
B. Proper segregation of duties.
C. Participation of those charged with governance.
D. Management's approach toward business risks.
Choice "D" is correct. Policies and procedures involving segregation of duties are control activities, not
control environment factors.
Choice "A" is incorrect. Participation of those charged with governance is a control environment factor.
Choice "B" is incorrect. Hiring and advancement policies are part of human resource policies and
practices, which are control environment factors.
Choice "C" is incorrect. Management's approach toward business risks is part of its philosophy and
operating style, which is a control environment factor.
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