Evaluation of the control environment

Evaluation of the control environment

1. Nature of internal control

   • Methods
   • Processes
   • Checks
   • Objectives
   • Level of risk maturity
   • Modifying risk
   • evaluation of controls
   • business opportunities

2. Purpose of internal control

   • Achieve objectives
   • Safegaurd
   • Promote
   • Complaince
   • Adhere
   • Consistent response
   • LILAC
   • CoCo
   • the 4Ns

3. Control environment

   • CoCo framework
     • Purpose
     • Commitment
     • Capability
     • monitoring and learning
     • Similarities with LILAC
     • three objectives
       • effective and efficient ops
       • Reliable internal/external reporting
       • Compliance with law etc.

4. Features of the control environment

   • CoCo broader approach
     • Exploit opportunities
     • Mitigation of weaknesses
     • Individual trust
     • Challenge assumptions
   • COSO
     • internal environment
     • commitment/competence
     • audit committee
     • philosophy and op style management
     • org structure
     • Responsibilities and authority
     • HR policies and practive

5. CoCo framework

   • establish and communicate objectives
   • internal and internal risks faced
   • performance
   • Policies

6. Risk aware culture

   • vitally important
   • management and staff
   • CoCo Framework
   • COSO framework
   • three contexts
   • LILAC/PCCML