The Internal Control Environment Research Proposal

The Internal Control Environment - Research Proposal Example Risk assessment is the component which enables the management to assess and analyze the risk associated with the accomplishment of objectives (Biegelman para.12). As in TPC, the elements of risk assessment includes an analysis of all three divisions and realizing the sources which could probably lead to control failure. For this purpose, TPC must set an internal control objective and then figure out the causes which would lead to deviations from the objective. Risk assessment is the component which enables the management to assess and analyze the risk associated with the accomplishment of objectives (Biegelman para.12). As in TPC, the elements of risk assessment includes an analysis of all three divisions and realizing the sources which could probably lead to control failure. For this purpose, TPC must set an internal control objective and then figure out the causes which would lead to deviations from the objective. The third component includes control activities or policies to create and implement strategies throughout the organization that ensures that objectives of internal control and minimization of risk would be achieved (Biegelman para.12). The major elements of this component are verification, performance reviews and separation of responsibilities etc. At TPC, this component involves implementing strategies and policies at headquarter as well as the three separate divisions. These policies might include a thorough system of performance measurement as well as control procedures (Committee of Sponsoring Organizations). The fourth component of internal control refers to management information and communication which entails communicating with employees on the internal control objectives as well as procedures and to instigate their efforts in meeting the goals (Biegelman para.12). TPC needs to enhance communication and information system among all the three divisions so as to ensure that the objective is communicated all over the organization.   The fifth and last component of internal control refers to monitoring which involves overseeing the whole internal control process and procedure to know if the process is carried out as planned and proceeding towards the desired objectives. The TPC’s management, as well as independent auditors, could keep a check over the proceeding of the control procedure in the organization and achievement of internal control objectives (Biegelman para.12).  Ã‚  Ã‚