The five interrelated components of internal control (according to the COSO framework) include the following:
A) Control environment, risk assessment, control activities, organizational structure, and monitoring
B) Control environment, risk assessment, integrity and ethical values, information and communication, and monitoring.
C) Control environment, risk assessment, control activities, information and communication, and monitoring
D) Control environment, risk assessment, control activities, information and communication, and human resource policies and practices

Question

Quizplus · Accepted Answer

According to the COSO framework, the five interrelated components of internal control include control environment, risk assessment, control activities, information and communication, and monitoring. Option A includes organizational structure, which is not considered one of the five components. Option B includes integrity and ethical values, which is important in internal control but not considered one of the five components. Option D includes human resource policies and practices, which is also important but not considered one of the five components in the COSO framework. Therefore, option C is the best choice as it includes all five components as per the COSO framework.

The Five Interrelated Components of Internal Control (According to the COSO