The purpose of the audit committee within an organization is to: Regulate the internal control system Examine the financial statements to determine if they are free from material misstatement Be responsible for the external and internal auditors Monitor operating results and financial records The control environment can be defined as: The policies and procedures used by management to meet their objectives. The actions, policies, and procedures that reflect the overall attitudes of top management about control. The lines of authority and responsibility within a company. The members of a company's board of directors who are responsible for dealing with the external and internal auditors