The task of critically reviewing a company's system of control can best be accomplished by a study group comprised of persons from operational management, financial management, internal audit, systems functions, and the board of directors or its audit committee. The study should begin with an analysis of the enterprise's overall approach to control, throughout which the organization's method and effectiveness of communicating information should be noted. Existing written corporate objectives should be reviewed for their accurate representation of the company's major goals. The appropriateness of the role, functions, and membership of audit committees should be also considered. With regard to management oversight, the study group should examine management definitions of responsibilities and authority standards for evaluation of performance, and reports to management about underlying operations. The study group can use internal audit standards to inquire about the role of internal audit groups within the company. It should also consider whether an appropriate ethical climate exists in the company's environment of control regarding strong policy statements, diligent monitoring of policy compliance, and prompt followup of violations. With respect to operational controls, the study group should try to identify major management planning and control techniques, define their role, and evaluate their effectiveness. Finally, the study group should ascertain whether access to financial records is controlled since the reliability of financial records is a crucial element in a control system. A diagram illustrates the hierarchy of typical organizational controls.