Management's Attitude Toward Aggressive Financial Reporting and Its Emphasis on Meeting

Multiple Choice

Management's attitude toward aggressive financial reporting and its emphasis on meeting projected profit goals most likely would significantly influence an entity's control environment when:

A) External policies established by parties outside the entity affect its accounting practices.
B) Management is dominated by one individual who is also a shareholder.
C) Internal auditors have direct access to the board of directors and the entity's management.
D) Those charged with governance are active in overseeing the entity's financial reporting policies.