Organizing Inspections Regarding Managerial Internal Control and Preventive Financial Control

The control environment is the foundation of the whole system of internal control. It constitutes the basis of all other components of internal control. He sets the tone of the organization.It provides discipline and climate that influence the overall quality of internal control. The control environment forms the basis for creating a vision and response to risks and controls from the staff of an organization. This paper presents the control environment that influence the way of establishing the strategy and objectives and how to structure control activities. The essence of any business is the people behind it - their individual tasks, including integrity, ethical values and competence - and the environment in which they work.