3.03

Control Environment

Principle 3 - Establish Structure, Responsibility, and Authority

Attribute 3.03 - Management develops an organizational structure with an understanding of the overall responsibilities and assigns these responsibilities to enable the organization to operate efficiently and effectively, comply with applicable laws and regulations, and reliably report information. Based on the nature of the assigned overall responsibility and related risks, management chooses the type and number of discrete divisions, operating units, functions, and other structures needed to achieve the entity's objectives. Management may identify discrete divisions, operating units, or functions, such as program offices and related subunits, to manage the entity's risk responses within the internal control system.

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