Internal Control is Like a Well Lit Christmas Tree Synopsis There are four important qualities for a Christmas tree: shape, colour, recognition and a focus for celebration. All are described as qualities for good control. ‘Each plays an important part in establishing the “adequate” and “reasonable” levels of control essential if “expected results” are to be achieved.’ Internal auditing should use each to develop cutting edge resources and practices for the services they provide.
This case study is based on an article published by the author in 1994 and reproduced in Leading Edge Internal Auditing (1998).
After Reading the Case Study Consider:
1. Do you see shape, colour, recognition and celebration in your organization’s control processes?
2. Do you keep these qualities in mind when you start every internal auditing engagement?