3.08

Control Environment

Principle 3 - Establish Structure, Responsibility, and Authority

Attribute 3.08 - Management determines what level of authority each key role needs to fulfill a responsibility. Management delegates authority only to the extent required to achieve the entity's objectives. As part of delegating authority, management evaluates each delegation for proper segregation of duties within the organizational structure. Segregation of duties helps prevent fraud, waste, and abuse in the entity by considering the need to separate authority, custody, and accounting in the organizational structure.³¹ As with assigning responsibility, those in key roles can delegate their authority for internal control to roles below them in the organizational structure.

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