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Management's attitude toward aggressive financial reporting and its emphasis on meeting projected profit goals is most likely to significantly influence an entity's internal control environment
Management's attitude toward aggressive financial reporting and its emphasis on meeting projected profit goals is most likely to significantly influence an entity's internal control environment when:
- The audit committee is active in overseeing the entity's financial reporting policies
- External policies established by parties outside the entity affect its accounting practices
- Management is dominated by one individual, who is also a shareholder
- Internal auditors have direct access to the board of directors and entity management
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