Factors determining tone at the top
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The purpose of this paper is to determine the factors that affect the tone at the top in senior management. Tone at the top can be described as the entity of wide attitude concerning integrity and consciousness in an organization as it is depicted by senior management. In any organization, internal auditors which are the employees always make judgments and conclusions according to the tone at the top as exhibited by the senior management (Thomas, & Strom-Gottfried, 2018). Coordination between the external and internal auditors is one of the factors determining the tone at the top management as financial misstatements are limited. Integrity and ethical collaboration between the external and internal auditors also influence the tone at the top in an organization. These encourage fraud risk assessment and management. In an organization, the managers must be willing to take risk and be able to share the fraud risk between the external and internal auditors.
Consistency is another factor determining the tone at the top as the leaders play an important role in determining the consistency of employees and desired outcomes. The behavior of the employers at the top determines the credibility and motivation of employees to work hard and being inspired by what the leader say and act. The knowledge and skills portrayed by the leaders at the top management determines the consistency, work ethics, integrity as well as the willingness of taking the risks of the organization (Delaney, & Whittington, 2015).The top management is the key components and determinants of the top tone of the organization as they are the leaders whereby everyone is looking at their behaviors and all acts so that other employees can follow. The atmosphere or climate created by the top management is the best for quality and successful organization acts.
In conclusion, influence from the top management is also important in an organization. The top management as well as got influence on integrity and ethics to internal auditors. The question remains as why is internal auditors’ prejudgments always at the top management? And why is the top management does not uphold ethics and integrity to the employees when negative values occur?
References
Delaney, P. R., & Whittington, O. R. (2015). Wiley CPA Examination Review, Outlines and Study Guides. Hoboken, NJ: John Wiley & Sons.
Thomas, M. S., & Strom-Gottfried, K. (2018). Best of the Boards: implementing Sound Governance and Leadership For Nonprofit Organizations. Hoboken, NJ: John Wiley & Sons.
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