Tone at the top

The tone at the top defines the level of commitment by management and the board of directors to having an open, honest, and ethically-correct corporate culture. This is a key element of an organization's system of controls, for proper support from the top provides a robust foundation for controls. Conversely, if employees see dishonesty and unethical behavior at the top of the organization, they will be much less likely to support the system of controls, and will be more likely to engage in fraudulent activities. In short, employees pay close attention to the actions of their supervisors, and will tend to mimic their behavior.

Related Courses

Accounting Controls Guidebook 
Ethical Responsibilities
Unethical Behavior