The importance of Control Environment, or “Tone at the Top,” on an organization’s risk management and control processes cannot be overstated. What elements contribute to an effective Control Environment?
The Committee of Sponsoring Organizations (COSO) of the Treadway Commission, a joint initiative of five professional finance, accounting and auditing organizations, identifies the following elements that influence the control consciousness of its people:
- Organizational structure
- Competence of personnel
- Integrity and ethical values
- Management’s operating style
- Assignment of authority and responsibility
- Processes for managing and developing its people
The importance of Control Environment is underscored by the Higher Learning Commission's placement of Integrity: Ethical and Responsible Conduct as Criterion Two.
Criteria for Accreditation
When the Higher Learning Commission completed its most recent evaluation of WSU in 2016, it used five criteria for accreditation:
- Mission
- Integrity: Ethical and Responsible Conduct
- Teaching and Learning: Quality, Resources and Support
- Teaching and Learning: Evaluation and Improvement
- Resources, Planning and Institutional Effectiveness
The importance of Control Environment is underscored by the Higher Learning Commission’s placement of Integrity: Ethical and Responsible Conduct as Criterion Two, second only to the mission of the university.