Describe the five key elements of internal controls. (10 marks)

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Answer 1

Answer #1

The five elements of internal control can be named as the following :

1. Control Environment : Managements phiosophy, Integrity and ethical values, Operating cycle etc fall under the control environment.

2. Control Activities : Control activities are the policies and procedures of your business.

3. Risk Assessment : Risk assessment is the evaluation of your business flow and exposure to risk.

4. Information and Communication : In this element of control we do the exchange of information within your business.

5. Monitoring : In this element we control to monitor the processes of assessing your internal control performance.

Thanks....

Answer 2

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