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ACC 290 Week 5 DQ1 2
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The control environment is the basis of the entire control system that the organization is establishing. The control environment is the value that is placed on integrity and the knowledge that unethical activity will not be tolerated. It is management’s responsibility to express behavior and attitude that enforces this ethical behavior. The control environment affects the internal control by setting a basis of control activities that safeguard assets, enhance accounting reliability, increase efficiency of operations, and compliance with laws and regulations. The negative elements of a control environment are that strict adherence must be applied continuously.

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