Create a Governance Framework For Your Own Organization A test for expertise in management, control and governance is for an internal auditor to create a framework of how external and internal controls integrate to achieve all their organization’s control objectives. Figure 5.1 provided a structure for such a framework. Each of the five elements in the framework can be researched to provide detail of their impact and influence on an organization’s management and performance:
1. Societal interests and values concern ethics and public attitudes to the organization’s existence and performance. Not just locally or nationally, but wider impacts an organization might have on global issues.
2. Stakeholders are all those interests, financial or otherwise, in an organization’s performance.
Rarely are these interests only by one type of stakeholder. More often interests are networked amongst groups of stakeholders. Some stakeholders are passive, others can be active, with strong influences on an organization’s management, control and governance objectives.
3. Rules and regulations are all the directives which establish mandatory and voluntary directions for an organization’s behaviour, and those who are associated with its performance.
These can be international, national, local or issued by other bodies with which an organization is associated, through its operations and those participating in its performance.
4. Control concepts are the developed theory and principles underlying all control and monitoring activities.
5. External monitoring covers all the independent groups who are involved in regulation,
review and investigation of an organization’s activities. Some of these groups have