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.

Use your cursor to match each example of management actions with the control environment principle it affects. A clearly articulated statement of ethical values Commitment to Integrity and Ethical Values Management is committed to hiring employees with appropriate levels of education, experience, and evidence of integrity and ethical behavior Effective Board of Directors The extent of independence of this group is critical Effective Organizational Structure A well designed structure provides a basis for planning, directing, and controlling operations Attracting, Developing, and Retaining Competent Employees The organization must hold individuals accountable for their internal control responsibilities Individual Accountability