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

This memo is in response to your request concerning how to establish the appropriate tone. The purposes of this memo are, first, to explain the meaning and significance of evaluating retain environment second, to discuss the integrity and good values third, to show the organizational structure fourth, the importance of establishing commitment to competence finally, to establish and segregate the division of responsibilities of pay and accounting department in order to establish the appropriate tone.Control EnvironmentControl environment is the step engaged by a keep partnership to prevent fraud both misappropriation of assets and fraudulent financial reporting. It has an equal role in assuring control 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 emphasizes that insepara ble control is a process to an end, and not an end in and of itself. The process is effected by individuals, not merely policy manuals, documents, and forms. By including the concept of healthy 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 monitoring controls. Integrity and Ethical ValuesIntegrity and ethical values are very importan... ...cide what skills are take to appropriately perform job responsibilities. Second, it must staff those jobs with individuals who have the needed skills.Trade-offs can be made in fulfilling these step, such as placing a less(prenomina l) experience person in a demanding job and providing that person with extra supervision. Develop a matrix management in other to share authority. point authorities in other to accomplish the organizations goals, and make sure that people who are making decisions understand that they will be responsible. flora Cited Auditing & Assurances Services 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