To help safeguard public assets, public entities need to develop a favorable control environment. Copies of internal control policies and procedures should be provided to all employees.
Equally important, however, is the tone set by management. To create a positive control environment, management should:
- Communicate to all employees the importance of internal controls;
- Take appropriate action against those who are not complying with approved internal control policies and procedures;
- Encourage employees to report exceptions not addressed by the policies; and
- Make employees feel comfortable when reporting potential wrongdoing or violations of policies and procedures.
For more information on internal controls, please see the Statement of Position: The Importance of Internal Controls at:
Date this Avoiding Pitfall was most recently published: 12/26/2014