CH07 Control Enviornment Principles [LO7-2]

Control Enviornment Principles

Read the overview below and complete the activities that follow.

The control enviornment, often referred to as "tone at the top", sets the tone of an organization by influencing the control awareness of the people within the organization.

CONCEPT REVIEW:

The control enviornment can be viewed as the foundation for all the other facets of internal control.

The control environment can be viewed as the foundation for all the other facets of internal control Part 2 - Concept Check 1. _should develop a statement of ethical values. Senior management 2. If employees lack - they may be ineffective in performing their duties, skills 3. Organizational structure provides a basis for planning, directing, and controlling operations 4. The audit committee should be composed of directors who are not of the organization. employees 5. To enhance the control environment, management develops job