Environment Control

A financial audit, internal audit, and Enterprise Risk Management all fall under the umbrella of a controlled environment, sometimes known as an “internal control environment.” It refers to the directors’ and management’s overall attitude, awareness, and actions about the internal control system and its importance to the firm.

Having a strong commitment to Integrity and Ethical Principles, maintaining the board of directors’ independence from management, and their oversight of the entity’s internal controls, to achieve business objectives, establish an organizational structure, reporting lines, authority, and responsibilities.