Valley Publishing Control Environment Memo
- This is a preview of the essay.
To view the full text you must login!
The control environment of Valley Publishing Company (VPC) is the foundation for all other components of its internal control. The principal forces exerting influence over the control environment are its integrity and ethical values; commitment to competence; board participation;, organizational structure; management philosophy and managerial style; as well as the assignment of authority of responsibility and human resources policies and procedures. Through careful analysis of the aforementioned areas of the company, VPC, though improvements are possible, satisfactorily maintains control of its operations.
Integrity and ethical values of those who create, administer, and monitor entity controls play an integral role in establishing the behavioral standards communicated and reinforced through the day to day operation of the firm. Historical evidence does not indicate anything to the detriment of Baynes and Grey's assessment of management integrity and ethics. However, there are no explicit communications of company expectations within the organization. Effective tools that VPC is missing and could implement include official Policy Statements and Codes of Conduct to aid in employee adherence and professional reflection upon the company.
A company's commitment to competence is demonstrated in the knowledge and skills necessary to accomplish the tasks defined in an individual's job requisites. This proficiency in personnel can be supplemented through initiatives such as formal and informal job descriptions, and solid personnel policies. VPC has not provided sufficient documentation to this end...