5.05

Control Environment

Principle 5 - Enforce Accountability

Attribute 5.05 - Management holds service organizations accountable for their assigned internal control responsibilities. Management may contract with service organizations to perform roles in the organizational structure. Management communicates to each service organization the objectives of the entity and their related risks, the entity's standards of conduct, the role of the service organization in the organizational structure, the assigned responsibilities and authorities of the role, and the expectations of competence for its role that will enable a service organization to perform its internal control responsibilities. Management, however, retains responsibility for the effectiveness of controls over the business processes assigned to service organizations.

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