Requirements of part A:
Entity-level controls define organization’s environment or atmosphere. They are designed to mitigate
risks that exist at the organization wide level (internal and external risks). They are used to monitor
operations, audit committee, internal audit function and self-assessment programs. Entity level controls
that can be founded in SHR Corporation are as follows:
Independent and objective internal audit function/committee:
In SHR Corp., one can expect to find an organizational culture that allows the internal audit
function to fulfill its responsibilities free from interference. Also, the internal auditors have an
unbiased mental attitude that allows them to perform engagements in an honest manner and
no significant quality compromises are made. This helps to provide objective advice to mitigate
risks and manage control process.
Ethical conduct and integral policies:
In SHR Corp., one can expect to find an organizational environment where policies, procedures,
guidelines and tools are clearly documented and communicated. The organization demonstrates
ethical framework and integral values which are imbedded in every department.
