The Internal Control Framework Developed by COSO Includes Five So-Called

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Examlex · Accepted Answer

The Answer is Five components of internal control are:
• The control environment. The control environment consists of the actions, policies, and procedures that reflect the overall attitudes of top management, directors, and owners of an entity about internal control and its importance to the company.
• Risk assessment. This is management's identification and analysis of risks relevant to the preparation of financial statements in accordance with appropriate accounting frameworks such as GAAP or IFRS.
• Information and communication. These are the methods used to initiate, record, process, and report the entity's transactions and to maintain accountability for the related assets.
• Control activities. These are the policies and procedures that management has established to meet its objectives for financial reporting.
• Monitoring. This is management's ongoing and periodic assessment of the quality of internal control performance to determine whether controls are operating as intended and are modified when needed.

The Internal Control Framework Developed by COSO Includes Five So-Called

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