Internal Control Essay

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GUIDANCE FOR DEVELOPING INTERNAL CONTROLS The following guidance is provided to assist a company in developing adequate internal controls. Please note that the list is not all-inclusive and that Importer Self-Assessment (ISA) Accounts may design their program to fit the circumstances, conditions, and risks relevant to the situation of the company. A more extensive guide, which could be useful to large or complex companies, is available in Appendix G in the ISA Handbook. Systems of internal control should contain the following components: Control Environment: The Company establishes and maintains an environment that supports CBP compliance, including fostering a system that supports compliance, maintaining competent personnel, and maintaining an organizational structure that supports compliance. Management conveys the message that integrity and ethical values must not be compromised. Management and employees have a positive and supportive attitude toward CBP internal controls and conscientious management of CBP-related operations. Management has a philosophy and operating style that is appropriate to the development and maintenance of effective internal controls for CBP, as evidenced by the following: • A commitment to the competence of personnel responsible for CBP-related activities. The company educates and trains employees about CBP programs that are affected by the employees’ jobs. The employees should be educated on the importance of CBP activities related to or affected by their job and the possible impact of errors. The employees should be trained adequately to successfully perform the job. • The company’s organizational structure and the way in which it assigns authority and responsibility for CBP operations contribute to effective internal controls. • The company’s management cooperates with auditors, does not attempt to hide known problems

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