Internal control includes ________.
A)control activities and inherent risks
B)information systems and external influences
C)the control environment and risk assessment processes
D)financial reporting and control activities

Question

Quizplus · Accepted Answer

Internal control includes the control environment, risk assessment processes, control activities, information systems, and monitoring of controls. Therefore, the best choice is C, which specifically identifies the control environment and risk assessment processes as components of internal control. Option A, control activities and inherent risks, only captures two specific components and is not inclusive enough. Option B, information systems, and external influences, only captures two components that are important, but not all-inclusive. Option D, financial reporting, and control activities, only captures two specific components and does not include all aspects of internal control.

Internal Control Includes ________