Control Environment

Control environment such as culture, values & attitudes toward internal controls & safeguarding assets.

1. DIRECTORS communication and enforcement of integrity and ethical values.
Essential elements which influence the effectiveness of the design, administration and monitoring of controls.

2. DIRECTORS commitment to competence (willingness to invest in training)
Management's consideration of the competence levels for particular jobs and how those levels translate into requisite skills and knowledge.

3. INEDS participation of those charged with governance (recommend improvements on control activities)
Independence from management, their experience and stature, the extent of their involvement and scrutiny of activities, the information which they receive, the degree to which difficult questions raised and pursued with management and their interaction with internal and external auditors.

4. MANAGEMENT's philosophy and operating style
Management's approach to taking and managing business risks, and management's attitude and actions toward financial reporting, information processing and accounting functions and personnel.

5. Organisational structure (seniority given to quality assurance executive or IA)
The framework within which an entity's activities for achieving its objectives are planned, executed, controlled and reviewed.

6. Assignment of authority and responsibility to quality assurance manager
How authority and responsibility for operating activities are assigned and how reporting relationships and authorisation hierarchies are established.

7. Human resource policies and practices
Recruitment, orientation, training, evaluating, counselling, promoting, compensating and remedial actions (reward pegged to quality & control)