Zen Ltd. is a manufacturer of ready-made garments. During the year 2021-22, they have opened two new branches and there is a substantial increase in their sales. The management has appointed CA Mr. A to review the intern

Control Environment: The control environment includes: The organization demonstrates a commitment to integrity and ethical values. The board of directors demonstrates independence from management and exercises oversight of the development and performance of internal control. Management establishes, with board oversight, structures, reporting lines, and appropriate authorities and responsibilities in the pursuit of objectives. The organization demonstrates a commitment to attract, develop, and retain competent individuals in alignment with objectives. The organization holds individuals accountable for their internal control responsibilities in the pursuit of objectives. The auditor shall obtain an understanding of the control environment. As part of obtaining this understanding, the auditor shall evaluate whether: Management has created and maintained a culture of honesty and ethical behaviour; and The strengths in the control environment elements collectively provide an appropriate foundation for the other components of internal control. The integrity, ethical values, and competence of the organization's people. How management assigns authority and responsibility, and organizes and develops its people. The organizational structure and assignment of authority and responsibility. The rigor around performance measures, incentives, and rewards to drive accountability for performance.