Control environment also called "Internal control environment". It is a term of financial audit

Financial audit

A financial audit, or more accurately, an audit of financial statements, is the verification of the financial statements of a legal entity, with a view to express an audit opinion...

, internal audit

Internal audit

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk...

 and Enterprise Risk Management

Enterprise Risk Management

Enterprise risk management in business includes the methods and processes used by organizations to manage risks and seize opportunities related to the achievement of their objectives...

. It means the overall attitude

Attitude (psychology)

An attitude is a hypothetical construct that represents an individual's degree of like or dislike for something. Attitudes are generally positive or negative views of a person, place, thing, or event— this is often referred to as the attitude object...

, awareness

Awareness

Awareness is the state or ability to perceive, to feel, or to be conscious of events, objects or sensory patterns. In this level of consciousness, sense data can be confirmed by an observer without necessarily implying understanding. More broadly, it is the state or quality of being aware of...

 and actions of directors

Board of directors

A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...

 and management

Management

Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...

 (i.e. "those charged with governance") regarding the internal control system and its importance to the entity. They express it in management style, corporate culture, values, philosophy

Philosophy

Philosophy is the study of general and fundamental problems, such as those connected with existence, knowledge, values, reason, mind, and language. Philosophy is distinguished from other ways of addressing such problems by its critical, generally systematic approach and its reliance on rational...

 and operating style, the organisational structure, and human resources

Human resources

Human resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations...

 policies and procedures.

Control environment in the COSO framework and COSO-ERM framework

Control environment the first of the 5 components of the COSO framework for the management of internal control (designed in 1994).
Extended as Internal environment, it is the first of the 8 components of the more recent "COSO-ERM" framework. The full name is "Enterprise Risk Management

Enterprise Risk Management

Enterprise risk management in business includes the methods and processes used by organizations to manage risks and seize opportunities related to the achievement of their objectives...

 Integrated Framework" for the management ERM

ERM

ERM may refer to: In systems and processes:* European Exchange Rate Mechanism* European Reference Materials* Enterprise relationship management* Enterprise risk management* Entity-relationship model...

(designed in 9/2004).