Easy Clean Control Evaluation Form



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1. Integrity and Ethical Values In evaluating this component of the control environment consider whether : * There appears to be sufficient integrity on the part of management and employees 2. Commitment to Competence In evaluating this component of the control environment consider whether : * Management has specified the competence level needed for particular skills and translated the desired levels of competence into requisite knowledge and skills * Evidence exists indicating that employees appear to have the requisite knowledge and skills GreatlyNeitherGreatly WeakensWeakens norSthrengthens

ControlSthrengthensControl 123456 7 123456 7 3. Board of directors or audit committee participation In evaluating this component of the control environment, consider whether : * A board exists and is sufficient in membership to deal with important issues adequately * Directors or committee members have sufficient knowledge, industry experience and time to serve effectively * Some directors or committee members are independent of management * Frequency and timeliness with which meetings are held with accounting officers and and external auditors * The board overseas and takes action as needed

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GreatlyNeitherGreatly WeakensWeakens norSthrengthens ControlSthrengthensControl 123456 7 4. Management’s philosophy and operating style In evaluating this component, consider whether : * Business risks are adequately monitored * Management is willing to undertake relatively low levels of business risk * Management places a high priority on internal control * Management explicity attempts to reduce the risk of misstatements GreatlyNeitherGreatly WeakensWeakens norSthrengthens ControlSthrengthensControl 123456 7 5. Organizational structure In evaluating this component, consider whether : The organization’s lines of authority and responsibility are clearly defined * Operating policies are determined centrally by senior management * Transaction policies and procedures are clearly established and strictly followed * The organization is adequately structured given its complexity and size * Management is actively involved in the supervision of data processing GreatlyNeitherGreatly WeakensWeakens norSthrengthens ControlSthrengthensControl 123456 7 6. Assignment of authority and responsibility In evaluating this component, consider whether : Appropriate policies for acceptable business practices, conflicts of interest and codes of conduct have been established and have been communicated to employees * There is a clear assignment of responsibility and delegation of authority for goals and objectives, operating functions, and regulatory requirements * Employee job responsibilities and specific duties are clearly established and communicated * Computer system documentation clearly indicates the procedures for authorizing transactions and for approving system changes GreatlyNeitherGreatly

WeakensWeakens norSthrengthens ControlSthrengthensControl 123456 7 * Data processing policies and procedures are adequately documented 7. Human resource policies and Procedures In evaluating this component, consider whether : Employees have the background and experience necessary for their job duties * Employees understand the duties and procedures applicable to their jobs * The organization provides for abuquate training of new personnel * The workloads of accounting personnel permit them to adequately control the quality of their work * The turnover rate of accounting personnel is low * The turnover rate of non-accounting personnel is low GreatlyNeitherGreatly WeakensWeakens norSthrengthens ControlSthrengthensControl 123456 7

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