internal controls

What are the Key Components of Internal Controls?

The key components of internal controls include:
1. Control Environment: This is the foundation of all other components of internal control, providing discipline and structure.
2. Risk Assessment: Identifying and analyzing risks that might prevent the achievement of business objectives.
3. Control Activities: These are the actions taken to mitigate risks, including policies, procedures, and mechanisms.
4. Information and Communication: Ensuring that relevant information is identified, captured, and communicated in a timely manner.
5. Monitoring: Regular assessments of the internal control system to ensure it is functioning as intended.

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