Which of the following represents a deficiency in the control environment?
A.
The sales department has failed to achieve targets for the last nine months.
B.
Employees report suspicious activity by calling the organization ' s ethics hotline.
C.
Hiring procedures do not include background checks for prospective job candidates.
D.
Management reports three potential ethics issues to the board of directors.
The Answer Is:
C
This question includes an explanation.
Explanation:
A deficiency in the control environment is represented by hiring procedures not including background checks for prospective job candidates. This lack of background checks can lead to hiring personnel who may not have integrity or the appropriate qualifications, increasing risk to the organization.
COSO Framework, which discusses components of a strong control environment, including the importance of conducting thorough background checks as part of personnel standards.
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