The Control Environment is defined as the overall attitude, awareness, and actions of directors and management (i.e. "those charged with governance") regarding the internal control system and its importance to the entity. The Control Environment is named as the first component within COSO 2013. COSO 2013 maintains the same five components previously identified within the 1992 framework. These include: • Control Environment • Risk Assessment • Control Activities • Information & Communication • Monitoring Each component is now defined by separate principles that underlie the component. Management and the external auditors must understand each of these principles and be able to adequately support that they exist, are appropriately designed and functioning. In addition, the components must effectively work in combination to provide for a positive attestation to internal controls. This session is designed to focus on the Control Environment and the five separate principles that support this component. 1. The organization demonstrates commitment to integrity and ethical values 2. Board maintains independence from management and exercises oversight of internal control. 3. Management establishes structure, reporting lines, and appropriate authority and responsibility 4. The organization demonstrates commitment to attract, develop and retain competent individuals. 5. The organization holds individuals accountable for internal control responsibilities. The session will dissect the five principles and important concepts that companies need to understand and support in order to provide that the principles are in place and functioning. We will also discuss concepts related to mapping the principles to controls within the organization. Field of Study: Auditing