COSO Principle 1: The entity demonstrates a commitment to integrity and ethical values
The board of directors and management, at all levels, demonstrate through their directives, actions, and behavior the importance of integrity and ethical values to support the functioning of the system of internal control
The expectations of the board of directors and senior management concerning integrity and ethical values are defined in the entity’s standards of conduct and understood at all levels of the entity and by outsourced service providers and business partners
Processes are in place to evaluate the performance of individuals and teams against the entity’s expected standards of conduct
Deviations from the entity’s expected standards of conduct are identified and remedied in a timely and consistent manner.