Ch$07$ Control Environment Principles $[$LO$7-2]$

Control Environment Principles

Read the overview below and complete the activities that follow.

The control environment, often referred to as "tone at the top", sets the tone of an

organization by influencing the control awareness of the people within the

organization.

CONCEPT REVIEW:

The control environment can be viewed as the foundation for all the other facets of

internal control.

Part $1-$ Drag and Drop

Use your cursor to match each example of management actions with the control environment

principle it affects.

A clearly articulated statement of ethical

values

A well designed structure provides a basis

for planning, directing, and controlling

operations

The extent of independence of this group is

critical

Management is committed to hiring employees

with appropriate levels of education, experience,

and evidence of integrity and ethical behavior

The organization must hold individuals

accountable for their internal control

Commitment to Integrity

and Ethical Values

Effective Board of

Directors

Effective Organizational

Structure

responsibilities

Attracting, Developing,

and Retaining

Competent Employees

Individual Accountability