ABSTRACT
The Tone at the Top refers to management's leadership, commitment and enforcement of openness, integrity, honesty, fairness, and ethical behavior in the organization. It also refers to the ethical atmosphere that is created, and sustained, by an organization's leaders. Congruence between words and actions is pivotal to ensure consistency and prevent the dilution or distortion of the toneset at the top. Another important element related to the tone at the top is the creation and support of mechanisms to train employees. Tone at the Top describes the behavioral, performance, and ethical expectations set at the highest levels of the organization. The board and senior management set the tone at the top of the organization. Internal auditors are often tasked with reviewing the Tone at the Top in their organizations, because it impacts many aspects of the control environment and the performance of internal controls.
