CONTROL ENVIRONMENT
Auditing

Suggestions by COSO - Summary

INTEGRITY & ETHICAL VALUES

Code Conduct & Policies
Tone Top
Ethical Conduct
Remedial Action - Violations
Mgt. Overriding Controls
Unrealistic Performance Goals

COMPETENCE

Tasks Defined
Knowledge & Skills Id

BOARD/AUDIT COMMITTEE

Independent
Use Of Committees
Knowledge & Experience
Frequency Meetings With Mgt., Etc.
Timely Information To Board
Advised Sensitive Matters - Timely
Oversight Compensation Exec. Mgt. & Internal Audit
Role Establishing Tone
Actions Taken

MGT. PHILOSOPHY & OPERATING STYLE

Type Risks Accepted
Turnover Key Functions
Attitude - Reliability Of Reporting & Protecting Assets
Interaction - Sr. & Operating Mgt.
Actions - Financial Reporting

ORGANIZATIONAL STRUCTURE

Appropriate To Manage Activities
Key Mgt. Responsibilities
Knowledge & Experience Key Mgt.
Reporting Relationships
Changes To Organizational Structure
Sufficient Staff

ASSIGNMENT OF AUTHORITY & RESPONSIBILITY

Responsibility & Authority To Accomplish G&O
Control Standards & Procedures
Sufficient Staff
Authority Vs. Responsibilities

HUMAN RESOURCE POLICIES & PROCEDURES

Policies & Procedures In Place
Awareness Responsibilities & Expectations
Remedial Actions
Policies For Ethical & Moral Standards
Candidates Background Checks
Retention & Promotion Criteria

Audit Services ^Tel:615-790-9858 ^Fax: 209-797-7983 ^{PO Box} 681387, Franklin, TN 37068