The World of Auditing: the Control Environment and Risk Assessment

The Committee of Sponsoring Organizations (COSO) requires companies to establish effective internal trains to prevent private eye issues and to make sure that these bears (control environment, risk assessment, control activities, information and communication, and monitoring) inhere in with regulations. Out of these five elements of internal control, the control environment is the graduation point and the most difficult to maintain. The control environment is the actions, policies, and way styles that influence a firms daily activities. It is screen background the tone of organization and influencing control consciousness of its employees. When we think of a control environment, we consider the philosophy, ideology, beliefs, attitude, key personnel, and concern of a melodic line and their ability to provide sufficient resources for all organisational issues. The control environment has a very pervasive structure that overwhelms troubles integrity and ethic al values and a commitment to organizational competence. In a good control environment, employees spang that doing the right thing is expected even if it hurts the fraternity whereas in a weak environment, procedures are constantly ignored.

In a traditional approach, auditors assess the control environment by way out a questionnaire to senior management to tick off if management policies much(prenominal) as a code of ethical motive hasten been implemented. Yet, a more effective method would be to postdate the pot who work in that environment, not management. This approach focuses not on the cognitive content that management thinks it is sendin! g scarcely on the message employees are receiving. For a business to exhibit a irrefutable control environment, management and auditors should not precisely demonstrate that a code exists but they must respect its effectiveness. This evaluation could include training sessions for management and employees on the telephoners code, a revision of the code of conduct, an implementation of an ethics hotline, an...If you want to jerk off a full essay, clubhouse it on our website: OrderCustomPaper.com

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