Name and describe the five elements of internal control. Is any one element more important than...

Name and describe the five elements of internal control. Is any one element more important than another?

Expert Solution

Answer :

Internal control ensures the operational effectiveness and efficiency of an organization, reliable financial reporting, and compliance with laws, regulations and policies.

The five elements of internal control are as follows :

Control environment - The control environment provides the standards and processes that provide the basis for carrying out internal control across the organization.
Risk Assessment - Risk Assessment helps in identifying risks and evaluating the same. This helps in filling the there are gaps between risks and controls.
Control procedures - Use of standard and consistent procedures helps in providing directions and scoring data in a testing situation in order to control all but the variables being examined.
Monitoring - Monitoring internal controls is essential to ensure controls are operating efficiently.
Information and communication - To support the achievement of its objectives, Information is necessary for the entity to carry out internal control responsibilities.

ekkarill92 answered 1 year ago

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