2.Corporate directors, management, external auditors, and internal auditors all play important roles in creating a proper control environment. Top management is primarily responsible for

AEstablishing a proper environment and specifying overall internal controls.

BReviewing the reliability and integrity of financial and the means used to collect and report such information..

CEnsuring that external and internal auditors adequately monitor the control environment.

DImplementing and monitoring controls designed by the board of directors.

AyesAccording to SIAS 1, “management plans, organizes, and directs in such a fashion as to provide reasonable assurance that established goals and objectives will be achieved.” Also, “management establishes and maintains an environment that fosters control.”

BnoInternal auditing is responsible for reviewing the reliability and integrity of financial information and the means used to collect and report such information.

C noManagement cannot delegate its responsibilities for control to auditors.

DnoThe board has oversight responsibilities but ordinarily does not become involved in the details of operations.