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Control environment

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Control environment

  • This topic has 2 replies, 2 voices, and was last updated 7 years ago by AvatarAnuja Nair.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • September 7, 2018 at 6:00 am #472007
    AvatarAnuja Nair
    Member
    • Topics: 365
    • Replies: 353
    • ☆☆☆☆

    Hi sir, when asked for “failures in internal control”, one way to do so , is to use the COSO
    5 component framework right?

    For control environment:
    We have to assess whether the control environment in the question is weak or strong.

    If top management seems to only care about profits and ignore controls then its likely that that the employees will not take internal controls seriously as well.They will tend to have a mindset that its okay to not follow the controls because as employees, they will definitely follow the lead of their senior managers. This indicates a weak control environment and it could be one of the reasons for failure in internal control.

    Am i right sir?

    September 7, 2018 at 7:43 am #472021
    AvatarKen Garrett
    Keymaster
    • Topics: 10
    • Replies: 10656
    • ☆☆☆☆☆

    Yes.

    September 7, 2018 at 9:46 am #472037
    AvatarAnuja Nair
    Member
    • Topics: 365
    • Replies: 353
    • ☆☆☆☆

    Thank you sir.

  • Author
    Posts
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  • The topic ‘Control environment’ is closed to new replies.

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