View source for Principle 15 - Communicate Externally


15.01 Management should communicate relevant and quality information
with appropriate external parties regarding matters impacting the
functioning of the internal control system.

Communication with External Parties 

15.02 Management communicates with, and obtains relevant and quality
information from, appropriate external parties using established
reporting lines. Open two-way external reporting lines allow for this
communication. External parties may include service organizations,
suppliers, contractors, regulators, regulated entities, external
auditors, federal entities, state and local governments, grantees, and
the public.

15.03 Management communicates relevant and quality information
externally through reporting lines so that appropriate external parties
can help the entity achieve its objectives, address related risks, and
support its internal control system. Information communicated by
management includes significant matters relating to the entity’s events
and activities that impact its internal control system. For instance,
information communicated to service organizations may include
information on the entity’s objectives and ethical values, identified
risks, internal control practices to consider, and performance metrics.
Information communicated for the entity to achieve program-related
objectives may include information on eligibility, reporting, and audit
requirements for recipients of federal financial assistance and legal
and regulatory requirements to regulated entities.

15.04 Management obtains information through reporting lines from
external parties. Information communicated to management includes
significant matters relating to risks, changes, or issues that impact
the entity’s internal control system. Communication may also include
information for the entity to achieve program-related objectives. These
communications are necessary for the effective operation of internal
control. Management evaluates external information obtained against the
characteristics of quality information and information processing
objectives and takes any necessary actions so that the information is
quality information.

15.05 The oversight body obtains information through reporting lines
from external parties. Information communicated to the oversight body
includes significant matters relating to risks, changes, and issues that
impact the entity’s internal control system. This communication is
necessary for the effective oversight of internal control.

15.06 External parties use separate reporting lines when external
reporting lines are compromised. Laws and regulations may require
entities to establish separate lines of communication, such as
whistleblower and ethics hotlines, for communicating confidential
information. Management informs external parties of these separate
reporting lines, how they operate, how they are to be used, and how the
information will remain confidential.

Appropriate Methods of Communication 

15.07 Management selects appropriate methods for communicating
externally. Management considers a variety of factors in selecting an
appropriate method of communication. Some factors to consider follow:

*   Audience - The intended recipients of the communication.

*   Nature of information - The purpose and type of information being
    communicated.

*   Availability - Information readily available to the audience when
    needed.

*   Cost - The resources used to communicate the information.

*   Legal or regulatory requirements - Requirements in laws and
    regulations that may impact communication.

15.08 Based on consideration of the factors, management selects
appropriate methods of communication. Management evaluates the entity’s
methods of communication on a periodic and ongoing basis so that the
organization has the appropriate tools to communicate quality
information throughout and outside of the entity on a timely basis.

15.09 Government entities not only report to the head of the government,
legislators, and regulators but to the public as well. In the federal
government, entities not only report to the President and Congress but
also to the public. Entities consider appropriate methods for
communicating with such a broad audience.

== Related Story Events ==

* [[2001: The Journey Begins|❓ 2001: The Journey Begins — Citizen Inquiries]]
* [[December 2024: Gaining Support|📋 December 2024: Gaining Support]]

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