Control environment

Control environment also called "Internal control environment". It is a term of financial audit, internal audit and Enterprise Risk Management. It means the overall attitude, awareness and actions of directors and management (i.e. "those charged with governance") regarding the internal control system and its importance to the entity. They express it in management style, corporate culture, values, philosophy and operating style, the organisational structure, and human resources policies and procedures.

Control environment in the COSO framework and COSO-ERM framework

Control environment the first of the 5 components of the COSO framework for the management of internal control (designed in 1994). Extended as Internal environment, it is the first of the 8 components of the more recent "COSO-ERM" framework. The full name is "Enterprise Risk Management Integrated Framework" for the management ERM (designed in 9/2004).

See also

• ISA 400 Risk Assessments and Internal Control
• Entity-Level Controls

External links

• IFAC Represents 2 500 000 accountants in 120 countries