An entity-level control is:

A A transaction-level check

B A broad control that affects the overall control environment (tone at top, code of ethics, governance)

C An IT password

D An inventory count

✓ Correct Answer: Option B

Entity-level controls set the overall control tone: governance structure, ethics codes, risk assessment, and management philosophy.

💡 Why is B) the correct answer?

The correct answer to the question "An entity-level control is:" is Option B: A broad control that affects the overall control environment (tone at top, code of ethics, governance).

The other options — A) A transaction-level check, C) An IT password, D) An inventory count — are incorrect for this CPA Exam Prep question. As explained above: Entity-level controls set the overall control tone: governance structure, ethics codes, risk assessment, and management philosophy.

📚 About This CPA Exam Prep Practice Question

This 2-level CPA Exam Prep question from the Business Environment (BEC) topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CPA Exam Prep practice test or use flashcards for spaced repetition review.

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An entity-level control is:

✓ Correct Answer: Option B

📚 About This CPA Exam Prep Practice Question

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