Question

What is the commitment to integrity and ethical values in the control environment.

Answer 1

To carryout internal control across an organisation it is necessary to set up proper processes, standards and structures in an organisational environment. The top management comprising Board of Directors and Senior/executive Management are first responsible to establish and maintain internal control including expected standards of conduct.

The first of the five principles of Control Environment is commitment to integrity and ethical values. It is the duty of top management to make sure that individual employees and the organisation as a whole demonstrates a commitment to integrity and ethical values, and it requires a strong tone at the top. A timely review evaluating adherence to standards of conduct and addressing deviation is also one of the top most priority when it comes to commitment towards integrity and ethical values in a control environment.