lahasmallbusiness.blogg.se - A company's control environment includes: course hero

Make sure that employees are well acquainted with the University’s policies and procedures that pertain to their job responsibilities.ĭiscuss ethical issues with employees. Make sure that the following policies and procedures are available in your department (hard copy or Internet access):Īdditionally, make sure that the department has a well-written departmental policies and procedures manual that addresses significant activities and unique issues.Įmployee responsibilities, limits to authority, performance standards, control procedures and reporting relationships should be clear.

Assignment of authority and responsibility.

A leadership philosophy and operating style that promote internal control throughout the organization.

The highest levels of integrity and personal and professional standards.

To set the tone, management should foster a strong environment that encourages:

Require the same standard of conduct from everyone in the organization.

Behave in an ethical manner, creating a positive tone "at the top.".

Establish and effectively communicate written policies and procedures, a code of ethics and standards of conduct.

To enhance an organization's control environment, the governing board and management of the environment should: It is an intangible factor that is essential to effective internal control. The control environment encompasses technical competence and ethical commitment.Employees in this environment are committed to following an organization's policies and procedures, and its ethical and behavioral standards.An environment in which competent people understand their responsibilities, the limits of their authority, and are knowledgeable, mindful and committed to doing what is right and doing it the right way.

The control environment reflects the values of an organization-the atmosphere in which people conduct their activities and carry out their control responsibilities.Īn effective control environment is defined as follows: