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ASSESSING THE CONTROL ENVIRONMENT

LESLIE CORPORATION: One important component in an organization's system of Internal Control is the "Control Environment".

Below are some facts about the Control Environment at Leslie Corporation.

Management and Board of Director members at Leslie communicate and encourage adherence to and knowledge of company policies for themselves and all employees.

The Board of Directors meets monthly, with 5 of the 7 Directors also serving on the Leslie senior management team as Chief Executive Officer or as one of 4 Vice Presidents. The other 2 Directors are friends of the Chief Executive Officer and have no experience in Leslie's industry.

At levels below the senior management team, Leslie ensures that competent employees are hired and that they have the resources to fulfill their job responsibilities

REQUIRED:

Comment on the control environment at the company using the facts presented. Ensure you state WHY a fact is a positive or a negative element of the Control Environment. Ensure you make a conclusion on the state of the control environment.