Control environment
Functional Standards Common Glossary, published by the Cabinet Office, defines the control environment as: ‘The attitude and actions of the board and management regarding the importance of control within the organisation. The control environment provides the discipline and structure for the achievement of the primary objectives of the system of internal control. The control environment includes the following elements: integrity and ethical values; management’s philosophy and operating style; organisational structure; assignment of authority and responsibility; human resource policies and practices; and competence of personnel.’
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