Controls Are Everybody’s Business (NAPSA)—In today’s drive toward specialization in the work environment, employees often have narrowly defined jobs. This can makeit difficult for employees to feel like they have role in cor- porate accountability. Of course, those at the top are theoretically responsible for setting organizational objectives, identifying the risks that might prevent accomplishing those objec- tives, determiningthe level of risk that is acceptable, and establishing an appropriate system of inter- Many experts believe that all employees should havea role in making an organization ethical. nal control to reduce the risks. tion in which you are a stakeholder. only as strong or as ethical as its weakest or most unethical em- tone communicated in words and deeds? effective control environment and does it include a meaningful code of conduct? 3. Is the board of directors But because any enterprise is ployee, the responsibility for an must be shouldered throughout the entire organization. This meansthe entire organization, and each person who works there, should be “tuned in”to inter- nal control. The Institute of Internal Auditors (IIA) believes that controls are everybody’s business. While management and the board set a tone for a corporate culture that acknowledges and main- tains an effective control environ- ment, everyone must play a part. There must be a clear organiza- tion-wide understanding and appre- ciation of the important elements of control—the control environment, risk assessment, control activities, information and communication, 1. Is the organization’s ethical 2. Is an ethics program in place active, independent, and well informed? 4. Are positions in the organization structured for optimum effectiveness, productivity and communication? 5. Are all responsibilities and accountabilities clearly defined? 6. Is delegation of authority commensurate with responsibility? 7. Do job descriptions include an analysis of the knowledge and skills needed to perform each position? 8. Does the organization hire The self-test below is designed to qualified, ethical, and well-trained personnel? 9. Do frequent interactions trol environmentprovidesthe discipline and structure necessary to influence its corporate culture. You may want to apply this to the company you work for or any organiza- Web site at www.theiia.org and search for keywords: organizational effectiveness training. andcontrol monitoring. determine if an organization’s con- occur between senior and operating management? To learn more, visit The IJA’s
