{"id":1455,"date":"2019-05-15T12:00:33","date_gmt":"2019-05-15T09:00:33","guid":{"rendered":"https:\/\/teolupus.com\/?p=1455"},"modified":"2023-10-26T10:25:31","modified_gmt":"2023-10-26T07:25:31","slug":"objectives-internal-control","status":"publish","type":"post","link":"https:\/\/teolupus.com\/en\/objectives-internal-control\/","title":{"rendered":"Communicates Within the Organization: Principle 14"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The organization communicates internally the information necessary to support the performance of internal control, including internal control objectives and responsibilities.<\/span><\/p>\n<h2><b>Focus Points:<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The following focal points highlight essential features of this principle:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Communicates Internal Control Information\u00a0\u2013\u00a0A process is implemented to communicate the necessary information to ensure that all personnel understand and implement their responsibilities regarding internal control.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The transmission of information across the organization includes the following.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Policies and procedures that support staff in fulfilling their responsibilities regarding internal control<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determined purposes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The importance, relevance, and benefits of effective internal control<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Duties and responsibilities of management and other personnel in carrying out controls<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The organization&#8217;s expectations for communicating any matter of significance regarding internal control, including weaknesses, deterioration, and non-compliance in internal control, up and down the organization and throughout the organization<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Management selects, develops, and disseminates controls that enable information to be shared through internal communications and enable management and other personnel to fulfill their control responsibilities across various functions, operating units, or departments.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A field service personnel in an organization&#8217;s sales department collects defect rate information on certain parts.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This information is also helpful for production and engineering directors, as it may indicate a problem with manufacturing quality or the product&#8217;s design. In addition, the results of monitoring actions are communicated to other personnel to ensure that the root cause of the problem is identified and corrective action is taken.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Communicates with the Board of Directors\u00a0\u2013\u00a0Management and the Board of Directors communicate with each other to have the information necessary to fulfill their respective duties and responsibilities regarding the organization&#8217;s objectives.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Communication between management and the board provides the information necessary to fulfill its oversight responsibility for internal control. Information communicated to the board of directors about internal control generally covers essential issues regarding compliance with the internal control system, changes in the internal control system, or problems arising from the internal control system.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Direct communication from other staff to the board is also essential. Board members should have direct access to employees without interference from management. This allows board members to freely ask questions and make assessments of staff about crucial issues that staff might not otherwise feel comfortable sharing, such as compliance with a code of conduct, staff competency, or management&#8217;s potential to violate internal controls.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Separate Communication Lines\u00a0\u2013\u00a0Separate communication channels, such as emergency hotlines, are available when normal communication channels do not work or are ineffective. These communication channels serve as fail-safe mechanisms that enable anonymous or confidential communication.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In some cases, when normal communication channels do not work or are ineffective, separate communication lines are necessary to create confidential or anonymous (anonymous) fail-safe communication mechanisms. Most organizations provide staff with a communication channel to convey such messages to the board of directors or a board representative, such as an audit committee member, and make staff aware of the existence of such a communication channel.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Such separate mechanisms, which encourage an organization&#8217;s employees to report suspected code of conduct violations without fear of reprisal, send a clear message that senior management is committed to open communication channels and will act on the information reported.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Select the Appropriate Communication Method\u00a0\u2013\u00a0The communication method considers the timing, audience, and type of information conveyed.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It is essential that information is both understandable and delivered effectively to ensure that messages are received as intended. Active forms of communication, such as face-to-face meetings, are often more effective than passive forms of communication, such as broadcast email or intranet messaging. Periodic evaluation of communication effectiveness helps ensure that communication methods are working.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Communicating information about internal control responsibilities alone may not be sufficient. With this notification, management can strengthen the messages conveyed by taking timely and consistent measures.<\/span><\/p>\n<h2><b>Resources for Internal Control Article\u00a0<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">International Internal Auditing Standards, International Institute of Internal Auditors,www.theiia.org<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Dr. Davut Pehlivanl\u0131, Current Internal Audit Practices, Beta 2010<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Prof. Dr. Nejat Bozkurt, Accounting Audit, Alfa 1998<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Prof.Dr.Nejat Bozkurt, T\u00dcRMOB Independent Audit Training Lecture Notes, 2012<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Dr.\u00d6zg\u00fcr \u00c7at\u0131kka\u015f, KGK, Marmara University. Corporate Governance Lecture Notes, 2013<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u0130SMMMO-Practical Information for Internal Audit in SMEs, 2013<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Turkish Internal Audit Institute, www.tide.org.tr<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Alp Buluch, Article, Internal Control, Hurses, 19 March 2013<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Turkish Commercial Code No. 6102<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">International Internal Auditing Standards, www.theiia.org<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">www.coso.orgTreadway Commission Supporting Institutions Committee, Internal Control-Integrated Framework, 2013<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The organization communicates internally the information necessary to support the performance of internal control, including internal control objectives and responsibilities. Focus Points: The following focal points highlight essential features of&#8230;<\/p>\n","protected":false},"author":2,"featured_media":1444,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[845],"tags":[],"class_list":{"0":"post-1455","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-insights"},"_links":{"self":[{"href":"https:\/\/teolupus.com\/en\/wp-json\/wp\/v2\/posts\/1455","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/teolupus.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teolupus.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teolupus.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/teolupus.com\/en\/wp-json\/wp\/v2\/comments?post=1455"}],"version-history":[{"count":0,"href":"https:\/\/teolupus.com\/en\/wp-json\/wp\/v2\/posts\/1455\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teolupus.com\/en\/wp-json\/wp\/v2\/media\/1444"}],"wp:attachment":[{"href":"https:\/\/teolupus.com\/en\/wp-json\/wp\/v2\/media?parent=1455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teolupus.com\/en\/wp-json\/wp\/v2\/categories?post=1455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teolupus.com\/en\/wp-json\/wp\/v2\/tags?post=1455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}