List and define each of the five elements of internal control

Answer 1

(1 ) Control Environment. The control environment is the atmosphere in which the members of an organization conduct their activities and carry out their responsibilities. The control environment is often called the "tone at the top" because it reflects the overall control consciousness of an organization.
(2 ) Risk assessment. Risk assessment refers to the identification and analysis of these risks, with the goal of effectively managing them. Because business conditions change throughout time, risk assessment is an ongoing organizational activity.
(3 ) Control activities. Control activities are the policies and procedures management establishes to address the risks that might prevent the organization from achieving its objectives.
(4 ) Information and communication. Information and communication to management about the control environment, risk assessment, control procedures, and monitoring elements of internal control are needed by management to guide operations and ensure compliance with reporting, legal, and regulatory requirements. It leads to open flow of relevant information throughout an organization.
(5 ) Monitoring. Monitoring refers to the assessment of the quality of an organization's internal control. Monitoring can be accomplished in two ways. The first is through ongoing activities. The second is through a separate evaluation.