Final answer:
The attitude and actions of the board and management are crucial for effective control within an organization. The board provides oversight and the management implements decisions.
Step-by-step explanation:
The attitude and actions of the board and management regarding the importance of control within the organization are crucial for effective corporate governance. The board of directors plays a key role in ensuring that the firm is run in the best interests of shareholders. They provide oversight, make important decisions, and set strategic objectives. Management, on the other hand, is responsible for implementing the board's decisions and maintaining control over day-to-day operations.
For example, the board's attitude towards control can be seen in their selection of the management team. If they prioritize control, they may choose executives with a track record of successful risk management and compliance. Additionally, their actions, such as regularly reviewing and monitoring financial statements, can demonstrate their commitment to maintaining control within the organization.
Similarly, management's attitude towards control can be reflected in their behavior. If they value control, they will establish policies and procedures to ensure compliance and mitigate risks. They will also be proactive in identifying and addressing control deficiencies. Their actions, such as conducting regular internal audits and implementing effective internal controls, can reinforce their commitment to control within the organization.