control (noun, con-trol, \ kənˈtroʊl \) environment (noun, en-vi-ron-ment, \ ɪnˈvaɪrənmənt \)
Definition: includes policies, procedures, management styles, operations, and values that affect and set the tone for an organization’s day-to-day activities. A firm’s control environment includes seven elements, which are examined and analyzed during an audit. These elements include a company’s: a) ethical values and communication system, b) dedication to competence, c) active participation of the management, d) philosophy and approach, e) organizational structure, f) assignment of accountability and authority, and g) policies, procedures, and practices.
In a Sentence:
- You should keep all elements of the company’s control environment in mind so that your employees can be happy and focus on their duties.
- According to the auditing completed by an independent agency, Vince’s Crafts have an excellent control environment, keeping the routine operations and activities in check.
- A business like Tesla is proud of its innovational control environment which allows them to continuously hire the best pros in the industry.
Synonyms and related words: enterprise risk management, financial audit, audit, limited liability company
