CEO and Head of the Audit Committee of the Board of Directors Essay

This memo is in response to your request concerning how to show the appropriate stride. The purposes of this memo are, first, to explain the pith and significance of evaluating check off environment second, to discuss the integrity and ethical set third, to show the organizational structure fourth, the importance of establishing commitment to competence finally, to establish and segregate the division of responsibilities of finance and accounting department in social club to establish the appropriate tone.Control EnvironmentControl environment is the stair engaged by a company to prevent fraud both(prenominal) misappropriation of assets and two-faced financial reporting. It has an equal role in assure laterality over manufacturing and other processes. As a result of fraudulent financial reporting, the objective of accounting company is to study the causal factors that are associated with fraudulent reporting and to make recommendation to reduce its incidence. COSO emphas izes that internal control is a process to an end, and not an end in and of itself. The process is constituted by individuals, not merely policy manuals, documents, and forms. By including the concept of clean assurance which recognizes that the cost of a companys internal control should not exceed the benefits expected to be obtained. The control environment sets the tone of the company by influencing the control awareness of individual. It may be viewed as the foundation for the other components of internal control. The effectiveness of internal control depends on the integrity and ethical values of the personnel who are responsible for creating, administrating, and monitor controls. Integrity and Ethical ValuesIntegrity and ethical values are very importan... ...cide what skills are required to appropriately perform job responsibilities. Second, it must(prenominal) staff those jobs with individuals who have the needed skills.Trade-offs can be made in fulfilling these step, su ch as placing a less experience person in a demanding job and providing that person with extra supervision. Develop a intercellular substance management in other to share authority. Delegate authorities in other to accomplish the organizations goals, and make sure that stack who are making decisions understand that they will be responsible.Works Cited Auditing & Assurances service by Messier 9th edition2 (COSO Internal control Framework, Executive Summary)3 http//www.isaca.org/Journal/Past-Issues/2009/Volume-3/Pages/Tone-at-the-Top-Is-Vital1.aspx4 http//www.coso.org/documents/990025P_Executive_Summary_final_may20_e.pdf5 www.journalofaccountancy.com May 2004