Chapter 4, Problem 2.3CS

Which of the following is not part of the definition of internal control? Separation of duties Safeguard assets Encourage employees to follow company policies Promote operational efficiency

What can be Consquences of Unethical Behaviour? 1. Why must a company’s managers understand the external environment?2. Why must managers relate to the external environment in a  socially responsible manner? 3. Why must managers relate to the natural environment in an environmentally manner? 4. Why must managers relate to their external in an ethical manner?

What is the primary role of internal controls in managing a business? a.To ensure that the financial statements are presented in such a manner as to provide relevant and reliable information for financial statement decision makers and the company's creditors. b.To constrain subordinates' activities in order to prevent employees from deviating from the scope of their responsibilities and encourage them to act in the best interest of the business. c.To encourage theft and to ensure that segregation of duties does not take place. d.To prevent cash from being stolen.

Ethics Codes help companies to keep a standardized way to take decisions else the decision can be biased. Unethical behaviors can damage the reputation of the company. Also if companies do not take strong measures against these then these can have a negative impact on others. The public or other stakeholders' interest can be subdued by personal interest. The impact of unethical behavior can have a long-term effect on any company's operation. Saint Leo's core values are Excellence, Community, Respect, Personal Development, Responsible Stewardship, and Integrity. Unethical behavior does not comply with any of it.

Which of the following is not a factor that influences a business's control environment? a.organizational structure b.personnel policies c.proofs and security measures d.management's philosophy and operating style