... Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] â Pearson Education Limited 2007Slide 7.1 FINANCIAL SYSTEMS AND AUDITING Internal Control and Control RiskMANAGEMENT ... awareness, and actions of directors and management regarding the internal control system and its importance in the entity. [Hayes, Dassen, Schilder and Wallage, Principles of Auditing An ... philosophy and operating style - leadership via control by example;(5) Organizational structure; (6) Assignment of authority and responsibility; and (7) Human resource policies and practices....