Environment control sets the tone of the
business organization, influencing the control consciousness of its all
level people. It is the basic foundation for all of the components of
internal control, providing discipline and structure.
Numerous factors comprise the control environment in an entity, among which are the following:
- Integrity and ethical values
- Commitment to competence
- Board of directors and audit committee
- Management philosophy and operating style
- Organizational structure
- Assignment of authority and responsibility
- Human resource policies and practices
