Question

9) Which of the following suggests a weakness in a company's internal environment?

A) The audit committee regularly meets with the external auditors.
B) The Board of Directors is primarily independent directors.
C) The company has an up-to-date organizational chart.
D) Formal employee performance evaluations are prepared every three years.

Answer 1

A weakness in a company's internal environment can be suggested by infrequent formal employee performance evaluations.

Step-by-step explanation:

Among the given options, a weakness in a company's internal environment can be suggested by D) Formal employee performance evaluations are prepared every three years. This suggests a lack of regular evaluation and feedback for employees, which can hinder their growth and development within the company. Regular performance evaluations are important for providing employees with constructive feedback and identifying areas for improvement.