4. Organisational structure and assignment of authority and responsibility.An organisational structure contributes to an entity's ability to meet its objectivesby providing an overall framework for planning, executing, controlling andmonitoring the entity's activities.Methods of imposing control The board of directors and the audit committee and the manner in which theyexercise their governance and oversight responsibilities have a major impact on thecontrol environment.Factors include the:1• Proportion of outside directors and the establishment of an auditcommittee.1• Experience of members in audit committee.
• Extent of their involvement with and scrutiny of management's activities.2
* Degree to which they raise and pursue difficult questions withmanagement.
* Nature and extent of their interaction with internal and external auditors.Internal auditInternal audit function strengthens the control environment. To be effective,internal audit auditor need to:1• skilled2• integrity;3• Have appropriate access to the board of directors and the audit committee,and to the external auditors.