In considering the extent to which management demonstrates a commitment to integrity and ethical values, the auditor may obtain an understanding through enquiries of management and employees, and through considering information from external sources, …

Evaluating the control environment (Ref: Para. 21(b)) Why the auditor evaluates the control environment …

The auditor’s evaluation of how the entity demonstrates behaviour consistent with the entity’s commitment to integrity and ethical values; whether the control environment provides an appropriate foundation for the other components of the entity’s system …

The auditor’s evaluation of the control environment …

The auditor’s evaluation of the control environment is based on the understanding obtained in accordance with paragraph 21(a). …

Some entities may be dominated by a single individual who may exercise a great deal of discretion. The actions and attitudes of that individual may have a pervasive effect on the culture of the entity, which in turn may have a pervasive effect on the …

The auditor may consider how the different elements of the control environment may be influenced by the philosophy and operating style of senior management taking into account the involvement of independent members of those charged with …

Although the control environment may provide an appropriate foundation for the system of internal control and may help reduce the risk of fraud, an appropriate control environment is not necessarily an effective deterrent to fraud.   Example: Human …

The auditor’s evaluation of the control environment as it relates to the entity’s use of IT may include such matters as: Whether governance over IT is commensurate with the nature and complexity of the entity and its business operations enabled by IT, …

Obtaining an understanding of the entity’s risk assessment process (Ref: Para. 22–23) Understanding the entity’s risk assessment process …