AUD 3 Internal Control 5 Flashcards
1
Q
5 Components of Internal Control
AU-C 315 requires the a_____ to obtain an understanding of all 5 components of internal control under COSO
A
5 Components of Internal Control
AU-C 315 requires the auditor to obtain an understanding of all 5 components of internal control under COSO
2
Q
5 Components of Internal Control
AU-C 315 requires the auditor to obtain an understanding of all 5 com_______s of internal control under COSO
A
5 Components of Internal Control
AU-C 315 requires the auditor to obtain an understanding of all 5 components of internal control under COSO
3
Q
5 Components of Internal Control
AU-C 315 requires the auditor to obtain an un________ing of all 5 components of internal control under COSO
A
5 Components of Internal Control
AU-C 315 requires the auditor to obtain an understanding of all 5 components of internal control under COSO
4
Q
5 Components of Internal Control
AU-C 315 requires the auditor to obtain an understanding of all 5 components of internal control under COSO
in order to eva______ the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
A
5 Components of Internal Control
AU-C 315 requires the auditor to obtain an understanding of all 5 components of internal control under COSO
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
5
Q
5 Components of Internal Control
in order to evaluate the de____ of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
A
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
6
Q
5 Components of Internal Control
in order to evaluate the design of relevant c______ls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
A
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
7
Q
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been imp________ed;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
A
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
8
Q
5 Components of Internal Control
in order to evaluate the design of relevant controls
and det_____e whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
A
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
9
Q
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the r___ of material misstatement;
and design the nature, timing and extent of further audit procedures.
A
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
10
Q
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
as__ss the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
A
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
11
Q
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of m_______ misstatement;
and design the nature, timing and extent of further audit procedures.
A
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
12
Q
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material miss_________t;
and design the nature, timing and extent of further audit procedures.
A
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
13
Q
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and de____ the nature, timing and extent of further audit procedures.
A
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
14
Q
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further a____ procedures.
A
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
15
Q
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the na____, timing and extent of further audit procedures.
A
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
16
Q
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, t__ing and extent of further audit procedures.
A
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
17
Q
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and ex____ of further audit procedures.
A
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
18
Q
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit pro_______es.
A
5 Components of Internal Control
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
19
Q
5 Components of Internal Control
AU-C 315 requires the auditor to ob____ an understanding of all 5 components of internal control under COSO
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
A
5 Components of Internal Control
AU-C 315 requires the auditor to obtain an understanding of all 5 components of internal control under COSO
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
20
Q
5 Components of Internal Control
AU-C 315 requires the auditor to obtain an understanding of all 5 components of internal control under C___
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
A
5 Components of Internal Control
AU-C 315 requires the auditor to obtain an understanding of all 5 components of internal control under COSO
in order to evaluate the design of relevant controls
and determine whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.
21
Q
5 Components of Internal Control
AU-C 315 requires the auditor to obtain an understanding of all 5 components of internal control under COSO
in order to evaluate the de____ of relevant controls and determine whether they have been implemented; assess the risk of material misstatement; and design the nature, timing and extent of further audit procedures.
A
5 Components of Internal Control
AU-C 315 requires the auditor to obtain an understanding of all 5 components of internal control under COSO
in order to evaluate the design of relevant controls and determine whether they have been implemented; assess the risk of material misstatement; and design the nature, timing and extent of further audit procedures.
22
Q
Elements of Internal Control: (CRIME)
- Control Environment (CHOPPER)
- Risk Assessment
- Control Activities
- Information and Communication
- Monitoring
or
5 components of internal control
(CRIME)
- Control activities
- Risk assessment
- Information and communication
- Monitoring
- Control Environment
A
Elements of Internal Control: (CRIME)
- Control Environment (CHOPPER)
- Risk Assessment
- Control Activities
- Information and Communication
- Monitoring
or
5 components of internal control
(CRIME)
- Control activities
- Risk assessment
- Information and communication
- Monitoring
- Control Environment
23
Q
Elements of Internal Control: (CRIME)
- Control Environment (CHOPPER)
The f___t component of the COSO framework is the control environment, also referred to as the tone at the top.
A
Elements of Internal Control: (CRIME)
- Control Environment (CHOPPER)
The first component of the COSO framework is the control environment, also referred to as the tone at the top.
24
Q
Elements of Internal Control: (CRIME)
- Control Environment (CHOPPER)
The first component of the C___ framework is the control environment, also referred to as the tone at the top.
A
Elements of Internal Control: (CRIME)
- Control Environment (CHOPPER)
The first component of the COSO framework is the control environment, also referred to as the tone at the top.
25
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
The first component of the COSO framework is the control environment, also referred to as the t___ at the top.
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
The first component of the COSO framework is the control environment, also referred to as the tone at the top.
26
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
The first component of the COSO framework is the control environment, also referred to as the tone at the t__.
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
The first component of the COSO framework is the control environment, also referred to as the tone at the top.
27
Control Environment = T___ at the Top
Elements of Internal Control: (CRIME)
Control Environment = Tone at the Top
28
Control Environment = Tone at the T__
Elements of Internal Control: (CRIME)
Control Environment = Tone at the Top
29
Control Environment = Tone a_ the Top
Elements of Internal Control: (CRIME)
Control Environment = Tone at the Top
30
Control Environment = Tone at t__ Top
Elements of Internal Control: (CRIME)
Control Environment = Tone at the Top
31
Control Environment = T___ a_ t__ T__
Elements of Internal Control: (CRIME)
Control Environment = Tone at the Top
32
Control Environment = T________________
Elements of Internal Control: (CRIME)
Control Environment = Tone at the Top
33
Control Environment =
Elements of Internal Control: (CRIME)
Control Environment = Tone at the Top
34
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
The first component of the COSO framework is the control environment, also referred to as the t___ at the top.
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the foundation for all other components of internal control, providing discipline and structure.
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
The first component of the COSO framework is the control environment, also referred to as the tone at the top.
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the foundation for all other components of internal control, providing discipline and structure.
35
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the t___ of an organization,
influencing the control consciousness of its people.
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the foundation for all other components of internal control, providing discipline and structure.
36
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an organization,
influencing the co____l consciousness of its people.
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
37
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an organization,
inf______ing the control consciousness of its people.
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
38
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control cons____ness of its people.
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
39
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control env________
sets the tone of an organization,
influencing the control consciousness of its people.
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
40
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an org________n,
influencing the control consciousness of its people.
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the foundation for all other components of internal control, providing discipline and structure.
41
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the fou______n for all other components of internal control, providing discipline and structure.
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the foundation for all other components of internal control, providing discipline and structure.
42
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the foundation for a__ other components of internal control, providing discipline and structure.
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the foundation for all other components of internal control, providing discipline and structure.
43
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the foundation for all other com________s of internal control, providing discipline and structure.
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the foundation for all other components of internal control, providing discipline and structure.
44
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the foundation for all other components of internal control, providing dis________ and structure.
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the foundation for all other components of internal control, providing discipline and structure.
45
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the foundation for all other components of internal control, providing discipline and str______e.
Elements of Internal Control: (CRIME)
1. Control Environment (CHOPPER)
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the foundation for all other components of internal control, providing discipline and structure.
46
What element of internal control that is the foundation for all other components of internal control, providing discipline and structure?
```
(Which CRIME?)
• Control activities
• Risk assessment
• Information and communication
• Monitoring
• Control Environment
```
Elements of Internal Control: (CRIME)
1. Control Environment
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the foundation for all other components of internal control, providing discipline and structure.
47
What element of internal control that sets the tone of an organization, influencing the control consciousness of its people?
```
(Which CRIME?)
• Control activities
• Risk assessment
• Information and communication
• Monitoring
• Control Environment
```
Elements of Internal Control: (CRIME)
1. Control Environment
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the foundation for all other components of internal control, providing discipline and structure.
48
What element of internal control that provides discipline and structure or all other components of internal control?
```
(Which CRIME?)
• Control activities
• Risk assessment
• Information and communication
• Monitoring
• Control Environment
```
Elements of Internal Control: (CRIME)
1. Control Environment
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the foundation for all other components of internal control, providing discipline and structure.
49
What element of internal control is referred to as the tone at the top?
```
(Which CRIME?)
• Control activities
• Risk assessment
• Information and communication
• Monitoring
• Control Environment
```
Elements of Internal Control: (CRIME)
1. Control Environment
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the foundation for all other components of internal control, providing discipline and structure.
50
What element of internal control influences the control consciousness of its people in an organization?
```
(Which CRIME?)
• Control activities
• Risk assessment
• Information and communication
• Monitoring
• Control Environment
```
Elements of Internal Control: (CRIME)
1. Control Environment
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the foundation for all other components of internal control, providing discipline and structure.
51
What element of internal control is the foundation for all other components of internal control?
```
(Which CRIME?)
• Control activities
• Risk assessment
• Information and communication
• Monitoring
• Control Environment
```
Elements of Internal Control: (CRIME)
1. Control Environment
"tone at the top."
The control environment
sets the tone of an organization,
influencing the control consciousness of its people.
It is the foundation for all other components of internal control, providing discipline and structure.
52
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
53
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Com________t to competence
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Commitment to competence
54
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Commitment to comp_______
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
55
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Hu___ resource policies and practices
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Human resource policies and practices
56
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Human res_______ policies and practices
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Human resource policies and practices
57
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Human resource po___ies and practices
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Human resource policies and practices
58
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Human resource policies and pra____es
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Human resource policies and practices
59
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Human resource policies a__ practices
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Human resource policies and practices
* Organizational structure
60
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Org_______nal structure
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Organizational structure
61
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Organizational stru______
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
62
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Part________n of those charged with Governance
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Participation of those charged with Governance
63
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Participation of those charged with Gov_______
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Participation of those charged with Governance
64
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Participation of th___ charged with Governance
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Participation of those charged with Governance
65
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Participation of those cha___d with Governance
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Participation of those charged with Governance
66
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Participation of those charged w___ Governance
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
67
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Com________t to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
68
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Philo____y of management and mgt operating style
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Philosophy of management and mgt operating style
69
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Philosophy of ma________ and mgt operating style
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Participation of those charged with Governance
70
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Philosophy of management and mgt op____ing style
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Philosophy of management and mgt operating style
71
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Philosophy of management and mgt operating st___e
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Philosophy of management and mgt operating style
* Ethical values and Integrity
72
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Eth____ values and Integrity
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Ethical values and Integrity
73
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Ethical val__s and Integrity
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Ethical values and Integrity
74
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Ethical values and Int_____y
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Ethical values and Integrity
75
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Ethical values a__ Integrity
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Ethical values and Integrity
* Responsibility assignment
76
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Resp________y assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Responsibility assignment
77
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Responsibility ass________t
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
• Responsibility assignment
78
Elements of Internal Control: (CRIME)
Control env__________t factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
79
Elements of Internal Control: (CRIME)
Control environment fac___s include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
80
Elements of Internal Control: (CRIME)
C_______ environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
81
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* C_________ to c___________
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
82
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* H______ r________ policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
83
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource po___ies and p______es
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
84
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* O___________ structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
85
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational s________
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
86
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* P_________ of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
87
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with G___________
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
88
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* P_________ o_ t_____ c_______ w___ Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
89
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* P____________________________________
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
90
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* P_________ of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
91
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of m___________ and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
92
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and m___________ operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
93
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt o_________ style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
94
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating s_____
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
95
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* P_________ o_ m___________ a__ m___________ o__________ s_____
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
96
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* P_______________________________________
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
97
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* E______ values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
98
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical v_____ and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
99
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and I________
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
100
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values a__ Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
101
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* E______ v_____ a__ I________
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
102
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* E_____________________
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
103
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* R_________ assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
104
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility a__________
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
105
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* C_________________
* H__________________________
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
106
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* O_____________________
* P______________________________________
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
107
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* P_______________________________________
* P_____________________________________
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
108
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* C_________________________
* Human resource policies and practices
* O______________________
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
109
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* H____________________________
* Organizational structure
* P_____________________________________
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
110
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* O_________________
* Participation of those charged with Governance
* P_______________________________________
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
111
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* P___________________________________
* Philosophy of management and mgt operating style
* E_______________________
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
112
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* P______________________________________
* Ethical values and Integrity
* R__________________
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
113
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* O_________________
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* E_____________________
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
114
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* C______________________
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* P_______________________________________
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
115
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* H_____________________________
* Organizational structure
* P_____________________________________
* Philosophy of management and mgt operating style
* E_______________________
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
116
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* H_____________________________
* Organizational structure
* Participation of those charged with Governance
* P_______________________________________
* Ethical values and Integrity
* R___________________
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
117
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* C______________________
* H_____________________________
* O_________________
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
118
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* C______________________
* H_____________________________
* O_________________
* P__________________________________
* P________________________________________
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
119
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* E_____________________
* R____________________
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
120
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* C______________________
* H_____________________________
* O_________________
* P__________________________________
* P________________________________________
* E_____________________
* R____________________
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
121
What are factors of control environment (CHOPPER)?
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
122
What is "H" in factors of control environment (CHOPPER)?
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
123
What is "R" in factors of control environment (CHOPPER)?
Elements of Internal Control: (CRIME)
Control environment factors include (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
124
Elements of Internal Control: (CRIME)
```
Control Environment (CHOPPER)
The first component of the COSO framework is the control environment, also referred to as the tone at the top.
```
The control environment sets the tone of an organization, influencing the control consciousness of its people. It is the foundation for all other components of internal control, providing discipline and structure.
Control environment f_____s (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
Elements of Internal Control: (CRIME)
```
Control Environment (CHOPPER)
The first component of the COSO framework is the control environment, also referred to as the tone at the top.
```
The control environment sets the tone of an organization, influencing the control consciousness of its people. It is the foundation for all other components of internal control, providing discipline and structure.
Control environment factors (CHOPPER):
* Commitment to competence
* Human resource policies and practices
* Organizational structure
* Participation of those charged with Governance
* Philosophy of management and mgt operating style
* Ethical values and Integrity
* Responsibility assignment
125
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to com________
– Effective control requires a sincere interest on the part of the employees in performing good work.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Effective control requires a sincere interest on the part of the employees in performing good work.
• H = Human resource policies and practices
– A company can minimize the control difficulties created by new employees by sound hiring and training policies for employees.
• O = Organizational structure
– A company that operates all over the world has different internal control problems than one operating entirely within a single building.
• P = Participation of those charged with Governance
– An audit committee of the board of directors that actively monitors the internal audit function produces a more attentive management on such matters.
• P = Philosophy of management and mgt operating style
– The belief (or lack of it) in the importance of internal control by management will affect the seriousness with which it is taken by the rest of the employees. This is especially the case when decision-making in the company is dominated by a single individual.
• E = Ethical values and Integrity
– Honest employees will be less likely to cause internal control difficulties related to fraud and improve the opportunity for those resulting from errors to be effectively detected.
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees determines the controls that will be needed. Again, the domination of decision-making by a single individual holds significance, since such power makes it extremely difficult for internal control to be trusted.
126
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Effective co_____ requires a sincere interest on the part of the employees in performing good work.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Effective control requires a sincere interest on the part of the employees in performing good work.
127
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Eff______ control requires a sincere interest on the part of the employees in performing good work.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Effective control requires a sincere interest on the part of the employees in performing good work.
128
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Effective control req___es a sincere interest on the part of the employees in performing good work.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Effective control requires a sincere interest on the part of the employees in performing good work.
129
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Effective control requires a sincere in_______ on the part of the employees in performing good work.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Effective control requires a sincere interest on the part of the employees in performing good work.
130
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Effective control requires a sincere interest on the part of the em___ees in performing good work.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Effective control requires a sincere interest on the part of the employees in performing good work.
131
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Effective control requires a sincere interest on the part of the employees in performing good w__k.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Effective control requires a sincere interest on the part of the employees in performing good work.
132
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Effective control requires a sincere interest on the part of the employees in per___ing good work.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Effective control requires a sincere interest on the part of the employees in performing good work.
133
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Effective control requires a sincere interest on the part of the employees in performing g__d work.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Effective control requires a sincere interest on the part of the employees in performing good work.
134
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Com_________ to competence
– Effective control requires a sincere interest on the part of the employees in performing good work.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Effective control requires a sincere interest on the part of the employees in performing good work.
135
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human res_____ policies and practices
– A company can minimize the control difficulties created by new employees by sound hiring and training policies for employees.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize the control difficulties created by new employees by sound hiring and training policies for employees.
136
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = H_____ resource policies and practices
– A company can minimize
the control difficulties created by new employees
by sound hiring and training policies for employees.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties created by new employees
by sound hiring and training policies for employees.
137
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can min______
the control difficulties created by new employees
by sound hiring and training policies for employees.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties created by new employees
by sound hiring and training policies for employees.
138
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the co______ difficulties created by new employees
by sound hiring and training policies for employees.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties created by new employees
by sound hiring and training policies for employees.
139
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control diff_____ies created by new employees
by sound hiring and training policies for employees.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties created by new employees
by sound hiring and training policies for employees.
140
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties created by new em____ees
by sound hiring and training policies for employees.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties created by new employees
by sound hiring and training policies for employees.
141
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties cre__ed by new employees
by sound hiring and training policies for employees.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties created by new employees
by sound hiring and training policies for employees.
142
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties created by n__ employees
by sound hiring and training policies for employees.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties created by new employees
by sound hiring and training policies for employees.
143
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties created by new employees
by sound h__ing and training policies for employees.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties created by new employees
by sound hiring and training policies for employees.
144
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties created by new employees
by sound hiring and tr___ing policies for employees.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties created by new employees
by sound hiring and training policies for employees.
145
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties created by new employees
by sound hiring and training po___ies for employees.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties created by new employees
by sound hiring and training policies for employees.
146
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties created by new employees
by sound hiring and training policies for em____ees.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties created by new employees
by sound hiring and training policies for employees.
147
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A com____ can minimize
the control difficulties created by new employees
by sound hiring and training policies for employees.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties created by new employees
by sound hiring and training policies for employees.
148
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource po___ies and practices
– A company can minimize
the control difficulties created by new employees
by sound hiring and training policies for employees.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize
the control difficulties created by new employees
by sound hiring and training policies for employees.
149
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and pr___ices
– A company can minimize the control difficulties created by new employees by sound hiring and training policies for employees.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• H = Human resource policies and practices
– A company can minimize the control difficulties created by new employees by sound hiring and training policies for employees.
150
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• O = Org_________nal structure
– A company that operates all over the world has different internal control problems than one operating entirely within a single building.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• O = Organizational structure
– A company that operates all over the world has different internal control problems than one operating entirely within a single building.
151
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• O = Organizational structure
– A com____ that operates all over the world has different internal control problems than one operating entirely within a single building.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• O = Organizational structure
– A company that operates all over the world has different internal control problems than one operating entirely within a single building.
152
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• O = Organizational structure
– A company that operates all over the w___d has different internal control problems than one operating entirely within a single building.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• O = Organizational structure
– A company that operates all over the world has different internal control problems than one operating entirely within a single building.
153
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• O = Organizational structure
– A company that operates all over the world has different in_______ control problems than one operating entirely within a single building.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• O = Organizational structure
– A company that operates all over the world has different internal control problems than one operating entirely within a single building.
154
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• O = Organizational structure
– A company that operates all over the world has different internal control problems than one operating entirely within a si___e building.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• O = Organizational structure
– A company that operates all over the world has different internal control problems than one operating entirely within a single building.
155
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• O = Organizational structure
– A company that operates all over the world has different internal control problems than one operating entirely within a single b____ing.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• O = Organizational structure
– A company that operates all over the world has different internal control problems than one operating entirely within a single building.
156
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• O = Organizational structure
– A company that op_____es all over the world has different internal control problems than one operating entirely within a single building.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• O = Organizational structure
– A company that operates all over the world has different internal control problems than one operating entirely within a single building.
157
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• O = Organizational structure
– A company that operates all over the world has diff_______ internal control problems than one operating entirely within a single building.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• O = Organizational structure
– A company that operates all over the world has different internal control problems than one operating entirely within a single building.
158
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• O = Organizational str_______
– A company that operates all over the world has different internal control problems than one operating entirely within a single building.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• O = Organizational structure
– A company that operates all over the world has different internal control problems than one operating entirely within a single building.
159
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Par_________ of those charged with Governance
– An audit committee of the board of directors
that actively monitors the internal audit function
produces a more attentive management
on such matters.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors
that actively monitors the internal audit function
produces a more attentive management
on such matters.
160
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An a____ committee of the board of directors
that actively monitors the internal audit function
produces a more attentive management
on such matters.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors
that actively monitors the internal audit function
produces a more attentive management
on such matters.
161
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit com____ee of the board of directors
that actively monitors the internal audit function
produces a more attentive management
on such matters.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors
that actively monitors the internal audit function
produces a more attentive management
on such matters.
162
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the bo___ of directors
that actively monitors the internal audit function
produces a more attentive management
on such matters.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors
that actively monitors the internal audit function
produces a more attentive management
on such matters.
163
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors
that ac____ly monitors the internal audit function
produces a more attentive management
on such matters.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors
that actively monitors the internal audit function
produces a more attentive management
on such matters.
164
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors
that actively mo_______s the internal audit function
produces a more attentive management
on such matters.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors
that actively monitors the internal audit function
produces a more attentive management
on such matters.
165
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors
that actively monitors the internal audit function
produces a more att______ management
on such matters.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors
that actively monitors the internal audit function
produces a more attentive management
on such matters.
166
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors
that actively monitors the internal audit function
pro____s a more attentive management
on such matters.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors
that actively monitors the internal audit function
produces a more attentive management
on such matters.
167
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors
that actively monitors the internal audit function
produces a more attentive m__________
on such matters.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors
that actively monitors the internal audit function
produces a more attentive management
on such matters.
168
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors
that actively monitors the internal audit function
produces a m___ attentive management
on such matters.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors
that actively monitors the internal audit function
produces a more attentive management
on such matters.
169
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors
that actively monitors the internal audit function
produces a more attentive management
on such mat___s.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors
that actively monitors the internal audit function
produces a more attentive management
on such matters.
170
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of th___ charged with Governance
– An audit committee of the board of directors that actively monitors the internal audit function produces a more attentive management on such matters.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors that actively monitors the internal audit function produces a more attentive management on such matters.
171
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Gov________
– An audit committee of the board of directors that actively monitors the internal audit function produces a more attentive management on such matters.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Participation of those charged with Governance
– An audit committee of the board of directors that actively monitors the internal audit function produces a more attentive management on such matters.
172
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of m___________ and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
This is especially the case when decision-making in the company is dominated by a single individual.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
This is especially the case when decision-making in the company is dominated by a single individual.
173
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The be___f (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
174
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or l__k of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
175
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal co_____
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
176
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the imp________of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
177
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by m___________
will affect the seriousness
with which it is taken by the rest of the employees.
```
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
178
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the ser_________ss
with which it is taken by the rest of the employees.
```
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
179
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the em____ees.
```
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
180
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is ta___ by the rest of the employees.
```
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
This is especially the case when decision-making in the company is dominated by a single individual.
181
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the r___ of the employees.
```
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
This is especially the case when decision-making in the company is dominated by a single individual.
182
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
This is especially the case when decision-making in the com____ is dominated by a single individual.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
This is especially the case when decision-making in the company is dominated by a single individual.
183
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
This is especially the case when decision-making in the company is dominated by a single in________.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
This is especially the case when decision-making in the company is dominated by a single individual.
184
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
This is especially the case when de______-making in the company is dominated by a single individual.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
This is especially the case when decision-making in the company is dominated by a single individual.
185
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
This is especially the case when decision-m__ing in the company is dominated by a single individual.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
```
– The belief (or lack of it)
in the importance of internal control
by management
will affect the seriousness
with which it is taken by the rest of the employees.
```
This is especially the case when decision-making in the company is dominated by a single individual.
186
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt op____ing style
– The belief (or lack of it) in the importance of internal control by management will affect the seriousness with which it is taken by the rest of the employees.
This is especially the case when decision-making in the company is dominated by a single individual.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
– The belief (or lack of it) in the importance of internal control by management will affect the seriousness with which it is taken by the rest of the employees.
This is especially the case when decision-making in the company is dominated by a single individual.
187
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Ph_______y of management and mgt operating style
– The belief (or lack of it) in the importance of internal control by management will affect the seriousness with which it is taken by the rest of the employees.
This is especially the case when decision-making in the company is dominated by a single individual.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• P = Philosophy of management and mgt operating style
– The belief (or lack of it) in the importance of internal control by management will affect the seriousness with which it is taken by the rest of the employees.
This is especially the case when decision-making in the company is dominated by a single individual.
188
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical va___s and Integrity
– Honest employees will
be less likely to cause internal control difficulties related to fraud
and improve the opportunity for those resulting from errors
to be effectively detected.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will
be less likely to cause internal control difficulties related to fraud
and improve the opportunity for those resulting from errors
to be effectively detected.
189
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest em____ees will
be less likely to cause internal control difficulties related to fraud
and improve the opportunity for those resulting from errors
to be effectively detected.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will
be less likely to cause internal control difficulties related to fraud
and improve the opportunity for those resulting from errors
to be effectively detected.
190
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will
be less likely to cause internal co_____ difficulties related to fraud
and improve the opportunity for those resulting from errors
to be effectively detected.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will
be less likely to cause internal control difficulties related to fraud
and improve the opportunity for those resulting from errors
to be effectively detected.
191
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will
be less likely to cause internal control diff_____ies related to fraud
and improve the opportunity for those resulting from errors
to be effectively detected.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will
be less likely to cause internal control difficulties related to fraud
and improve the opportunity for those resulting from errors
to be effectively detected.
192
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will
be less likely to cause internal control difficulties related to fr__d
and improve the opportunity for those resulting from errors
to be effectively detected.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will
be less likely to cause internal control difficulties related to fraud
and improve the opportunity for those resulting from errors
to be effectively detected.
193
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will
be less likely to cause internal control difficulties related to fraud
and imp____ the opportunity for those resulting from errors
to be effectively detected.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will
be less likely to cause internal control difficulties related to fraud
and improve the opportunity for those resulting from errors
to be effectively detected.
194
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will
be less likely to cause internal control difficulties related to fraud
and improve the opp________ for those resulting from errors
to be effectively detected.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will
be less likely to cause internal control difficulties related to fraud
and improve the opportunity for those resulting from errors
to be effectively detected.
195
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will
be less likely to cause internal control difficulties related to fraud
and improve the opportunity for those re____ing from errors
to be effectively detected.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will
be less likely to cause internal control difficulties related to fraud
and improve the opportunity for those resulting from errors
to be effectively detected.
196
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will
be less likely to cause internal control difficulties related to fraud
and improve the opportunity for those resulting from er___s
to be effectively detected.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will
be less likely to cause internal control difficulties related to fraud
and improve the opportunity for those resulting from errors
to be effectively detected.
197
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will
be less likely to cause internal control difficulties related to fraud
and improve the opportunity for those resulting from errors
to be effectively de____ed.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will
be less likely to cause internal control difficulties related to fraud
and improve the opportunity for those resulting from errors
to be effectively detected.
198
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and In_______y
– Honest employees will be less likely to cause internal control difficulties related to fraud and improve the opportunity for those resulting from errors to be effectively detected.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will be less likely to cause internal control difficulties related to fraud and improve the opportunity for those resulting from errors to be effectively detected.
199
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will be le__ likely to cause internal control difficulties related to fraud and improve the opportunity for those resulting from errors to be effectively detected.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will be less likely to cause internal control difficulties related to fraud and improve the opportunity for those resulting from errors to be effectively detected.
200
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will be less likely to ca___ internal control difficulties related to fraud and improve the opportunity for those resulting from errors to be effectively detected.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will be less likely to cause internal control difficulties related to fraud and improve the opportunity for those resulting from errors to be effectively detected.
201
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Et_____ values and Integrity
– Honest employees will be less likely to cause internal control difficulties related to fraud and improve the opportunity for those resulting from errors to be effectively detected.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• E = Ethical values and Integrity
– Honest employees will be less likely to cause internal control difficulties related to fraud and improve the opportunity for those resulting from errors to be effectively detected.
202
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility ass________
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
203
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, res__________ and accountability is assigned to different employees
determines the controls that will be needed.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
204
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which auth______, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
205
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and acco________ is assigned to different employees
determines the controls that will be needed.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
206
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is ass___ed to different employees
determines the controls that will be needed.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
207
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different em___ees
determines the controls that will be needed.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
208
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to diff______ employees
determines the controls that will be needed.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
209
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the co______s that will be needed.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
210
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
dete_____es the controls that will be needed.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
211
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be n___ed.
Again, the domination of decision-making by a single individual holds significance,
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance,
212
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of dec_____-making by a single individual holds significance,
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance,
213
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-m__ing by a single individual holds significance,
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance,
214
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a sin___ individual holds significance,
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance,
215
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single ind______ holds significance,
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance,
216
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds sig__________,
since such power makes it extremely difficult for internal control to be trusted.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance,
since such power makes it extremely difficult for internal control to be trusted.
217
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the dom________ of decision-making by a single individual holds significance,
since such power makes it extremely difficult for internal control to be trusted.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance,
since such power makes it extremely difficult for internal control to be trusted.
218
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance,
since such po___ makes it extremely difficult for internal control to be trusted.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance,
since such power makes it extremely difficult for internal control to be trusted.
219
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance,
since such power makes it extremely diff____ for internal control to be trusted.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance,
since such power makes it extremely difficult for internal control to be trusted.
220
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance,
since such power makes it extremely difficult for internal co_____ to be trusted.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance,
since such power makes it extremely difficult for internal control to be trusted.
221
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance,
since such power makes it extremely difficult for internal control to be tr___ed.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance,
since such power makes it extremely difficult for internal control to be trusted.
222
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Res_________ assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance,
since such power makes it extremely difficult for internal control to be trusted.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance,
since such power makes it extremely difficult for internal control to be trusted.
223
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = R__________ assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance, since such power makes it extremely difficult for internal control to be trusted.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance, since such power makes it extremely difficult for internal control to be trusted.
224
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance, since such power makes it ext_______ difficult for internal control to be trusted.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees
determines the controls that will be needed.
Again, the domination of decision-making by a single individual holds significance, since such power makes it extremely difficult for internal control to be trusted.
225
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Effective control requires a sincere interest on the part of the employees in performing good work.
• H = Human resource policies and practices
– A company can minimize the control difficulties created by new employees by sound hiring and training policies for employees.
• O = Organizational structure
– A company that operates all over the world has different internal control problems than one operating entirely within a single building.
• P = Participation of those charged with Governance
– An audit committee of the board of directors that actively monitors the internal audit function produces a more attentive management on such matters.
• P = Philosophy of management and mgt operating style
– The belief (or lack of it) in the importance of internal control by management will affect the seriousness with which it is taken by the rest of the employees. This is especially the case when decision-making in the company is dominated by a single individual.
• E = Ethical values and Integrity
– Honest employees will be less likely to cause internal control difficulties related to fraud and improve the opportunity for those resulting from errors to be effectively detected.
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees determines the controls that will be needed. Again, the domination of decision-making by a single individual holds significance, since such power makes it extremely difficult for internal control to be trusted.
Elements of Internal Control: (CRIME)
E : Control Environment
Factors (CHOPPER)
• C = Commitment to competence
– Effective control requires a sincere interest on the part of the employees in performing good work.
• H = Human resource policies and practices
– A company can minimize the control difficulties created by new employees by sound hiring and training policies for employees.
• O = Organizational structure
– A company that operates all over the world has different internal control problems than one operating entirely within a single building.
• P = Participation of those charged with Governance
– An audit committee of the board of directors that actively monitors the internal audit function produces a more attentive management on such matters.
• P = Philosophy of management and mgt operating style
– The belief (or lack of it) in the importance of internal control by management will affect the seriousness with which it is taken by the rest of the employees. This is especially the case when decision-making in the company is dominated by a single individual.
• E = Ethical values and Integrity
– Honest employees will be less likely to cause internal control difficulties related to fraud and improve the opportunity for those resulting from errors to be effectively detected.
• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees determines the controls that will be needed. Again, the domination of decision-making by a single individual holds significance, since such power makes it extremely difficult for internal control to be trusted.
