2.07

Control Environment

Principle 2 - Exercise Oversight Responsibility

Attribute 2.07 -

Further, in determining the number of members of an oversight body, the entity or applicable body considers the need for members of the oversight body to have specialized skills to enable discussion, offer constructive criticism to management, and make appropriate oversight decisions. Some specialized skills may include the following:

• Internal control mindset (e.g., professional skepticism and perspectives on approaches for identifying and responding to risks and assessing the effectiveness of the internal control system).
• Programmatic expertise, including knowledge of the entity's mission, programs, and business processes (e.g., procurement, human capital, and functional management expertise).
• Financial expertise, including financial reporting (e.g., accounting standards and financial reporting requirements and budgetary expertise).
• Relevant information technology expertise (e.g., understanding critical systems, information security practices, and technology risks and opportunities).
• Legal and regulatory expertise (e.g., understanding of applicable laws and regulations).***

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