November 8, 2011, presentation to IMA members detailing entity level controls to include the control environment, risk assessment, communication and monitoring aspects of internal controls.
Integrity and ethical values. – through managements attitudes and actions they demonstrate character, integrity and ethical values. These values develop and set the standard of contact for the organizationCommitment to competence The entity is committed to competence in the requirements of particular jobs and in translating those requirements into knowledge and skills.Attention and oversight provided by a board of directors or audit committee (those charged with governance). The board of directors and/or audit committee is actively involved and has significant influence over the entity's internal control environment and its financial reporting.Management's philosophy and operating style. - Management's philosophy and operating style are consistent with a sound control environment and have a pervasive effect on the entity. Management analyzes the risks and benefits of new ventures, assesses turnover among employees, investigates and resolves improper business practices, views accounting as a means to monitor and control the various activities of the organization, and adopts accounting policies that reflect the economic realities of the business.Manner of assigning authority and responsibility - The entity assigns authority and responsibility to provide a basis for accountability and control.