1. Towards an Optimal Internal Control Environment
Katleen Seeuws
Belgium

2. INTRODUCTION The control environment includes the following elements:
Integrity and ethical values.
Management’s philosophy and operating style.
Competence of personnel.
Organisational structure.
Assignment of authority and responsibility.
Human resource policies and practices.
(IIA definition)
SOFT
HARD

3. INTERACTION BETWEEN FORMAL & BEHAVIOURAL ASPECTS
STIMULATE
PROMOTE
MANAGEMENT
RESPONSIBILITY
EVERYONE’S
RESPONSIBILITY
INTERACTION
FORMAL FRAMEWORK
BEHAVIOUR
AND HUMAN ASPECTS
IDENTIFICATION
ADHERANCE

4. ASPECTS OF THE FORMAL FRAMEWORK
Clear values
Reflected in processes and procedures
Accountability structures
Code of ethics
Training
HR procedures
Annual Mgt Declaration
Sunshine laws
Conflict of interest register …
TOOLS

5. IMPLEMENTATION ASPECTS ON THE INDIVUDUAL LEVEL
Adequate reward systems
Self-assessment tools
Evaluation tools
Staff involved in decision making
Balance in work-private life
Management accessible for staff …
Creating awareness
Tone at the top
Motivating staff
Ensuring transparency
TOOLS

6. MEASURING, EVALUATION & MONITORING
Measuring maturity
Evaluation by internal audit
Monitoring by
Discouraging non-compliance
Fraud policy
Exit-interviews
Staff satisfaction survey
Identification of ‘red flags’
Reporting on deficiencies
Adequate rewarding and sanction procedures
Whistle-blowing system
Registration of incidents …
TOOLS