ABSTRACT
Organizational formations reflect personal aims, values, expectations, and sentiments that transform into a culture. There is a link between organizational leadership, culture, climate, and the environment from a functionalist perspective. As equivalent control environment factors, management’s awareness and actions express leadership and communication intensity. Moreover, governmental enactment of laws continues, and the regulatory environment has become more sophisticated due to unacceptable conduct remediation. Controlling and monitoring activities attempting to ensure acceptable risk responses include policies, directives, standards, procedures, and rules. Management’s philosophy for controlling and monitoring reflects a broad range of beliefs, concepts, and attitudes that significantly affect the entity’s necessary policies and determine the organizational culture. Chapter 2 discusses entity-centric considerations for the control environment and Government–Entity–Audit domain convergences. Additionally, Chapter 2 presents legal issues, managerial practices, control inscriptions, and technology deployments as entity risk determinants.
