Entity Level Controls - Control Environment Questionnaire

This document should be used as a general guide to use when creating an entity-level controls questionnaire. It does not address all controls that could be assessed during this process. Subscribers are encouraged to customize the questionnaire so that it reflects specific company practices and business operations.

What is the Control Environment?
The control environment provides an atmosphere in which people conduct their activities and carry out their control responsibilities. The control environment sets the tone of an organization by influencing the control consciousness of its people. It is the foundation for all other components of internal control, providing discipline and structure. Control environment factors include the integrity, ethical values, and competence of the entity's people; management's philosophy and operating style; the way management assigns authority and responsibility; the way management organizes and develops its people; and the attention and direction provided by the audit committee and board of directors.

What is the objective of the Control Environment?
The objective of the control environment is to establish and promote a collective attitude toward achieving effective internal control over the entity's business.

The questionnaire below captures the following information about control objectives related to entity-level control environment controls:

* COSO Attribute
* Does this control exist?
* Describe specific activities, programs or controls in place that satisfy the objective
* New/Changed in current year
* Controls properly designed?
* Control owner
* Test procedures
* Documentation reference
* Work paper reference
* Controls operating effectively?
* Describe the basis for effectiveness conclusion (including evidence of operation)
* Deficiencies noted
* Type of deficiency (Efficiency, Fin. Reporting, Compliance)
* Management action plan to address deficiencies

The questionnaire includes the following 61 points of focus/control objectives for control environment entity-level controls: