（2007）Entity-Level Controls：Strengthening Internal Control Through More Effective and Efficient Entity-Level Controls.pdfVIP

!@# Entity-Level Controls Strengthening Internal Control Through More Effective and Efficient Entity-Level Controls En t i t y -LE v E L C o n t ro L s Strengthening Internal Control Through More Effective and Efficient Entity-Level Controls The international clamor for increased accountability and transparency has prompted stakeholders around the globe to press companies to better manage risks through stronger internal controls. Internal control and corporate governance measures are being considered in – or have been enacted by – Australia, Canada, China, the member countries of the European Union, India, Japan, South Africa, the United States and other countries. Key elements of a strong internal control structure include a top-down risk assessment, effective and efficient communications and monitoring, robust control activities, and a well-established control environment. Entity-level controls strengthen internal control overall by helping companies to meet their regulatory, business, and operational priorities. Entity-level controls set the tone and establish the expectations of the organization’s control environment. Entity-level controls can be used to monitor the extent to which that tone and those expectations are being fulfilled. In short, entity-level controls help management deliver on its promise to stakeholders to run their companies effectively and efficiently. The benefits of effective and efficient entity-level controls can be significant and may include: Reduction of the likelihood of a negative risk event by establishing and reinforcing the infrastructure that sets the control consciousness of the organization; A broad risk coverage over financial reporting and operations. For companies conducting evaluations of internal controls, the presence of effective entity-level controls can contribute to a more effective and efficient evaluation