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7 The COSO framework: control environment

The first internal control component in COSO’s framework is the control environment. Video 2 below covers the following aspects of control environment:

  • integrity and ethical values
  • management’s philosophy and operating style
  • commitment to competence
  • the role of the human resources department
  • organisational structure
  • board of directors and the audit committee
  • holding individuals accountable for their responsibilities.
Video 2 Control environment
Transcript (opens in new window)
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