ASSESSING THE CONTROL ENVIRONMENT LESLIE CORPORATION : One important component in an organization's system of Internal Control is the " Control Environment " . Below are some facts about the Control Environment at Leslie Corporation . Management and Board of Director members at Leslie communicate and encourage adherence to and knowledge of company policies for themselves and all employees . The Board of Directors meets monthly , with all 7 Directors being independent of management . Furthermore , all 7 Directors are experienced in management in other companies ( earlier in their careers ) and have extensive experience in Leslie's industry . At levels below the senior management team , Leslie has adopted a " cost - reduction " strategy whereby employees are hired at the lowest possible salaries ( and therefore tend to be inexperienced or un - skilled , and often both ) . Leslie is satisfied the salary cost savings are greater than any cost associated with employees who often do not have the competencies to fulfill their job responsibilities . REQUIRED : Comment on the control environment at the company using the facts presented . Ensure you state WHY a fact is a positive or a negative element of the Control Environment . Ensure you make a conclusion on the state of the control environment . STUDENT RESPONSE BELOW :