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Chapter 7 3 4
Components of internal control
Components of
internal control
Control Information
Monitoring
environment system
Entity’s risk
Control
assessment activities
process
3.1 Control environment
The control environment includes the governance and management
functions and the attitudes, awareness and actions of those charged
with governance and management concerning the entity’s internal
control and its importance in the entity.
Elements of a strong control environment:
Communication and enforcement of integrity and ethical values
Commitment to competence
Participation by those charged with governance
Management’s philosophy and operating style
Organisational structure
Assignment of authority and responsibility
Human resource policies and practices.
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