Internal control has become a very important focus for publicly traded and privately-held companies alike. Internal control is intended to accomplish at least three objectives and consists of five components of internal control. List the three objectives and five components of internal control.
What will be an ideal response?
Objectives of internal control include:
1. reliability, timeliness, and transparency of internal and external, nonfinancial and financial reporting,
2. effectiveness and efficiency of operations, including safeguarding of assets, and
3. compliance with applicable laws and regulations.
The five components of internal control include:
1. the control environment,
2. the entity's risk assessment process,
3. information and communication,
4. control activities, and
5. monitoring of controls.
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