Question

The major components of internal control include all of the following, except:

a.Risk assessment.
b.The control environment.
c.Internal auditing.
d.Control activities.

Answer 1

The major components of internal control include control environment, risk assessment, information and communication, and monitoring activities. Control activities, however, are not part of internal control.

Step-by-step explanation:

The major components of internal control include the following:

1. Control environment: This refers to the overall attitude, awareness, and actions of management and employees regarding the importance of internal control.
2. Risk assessment: This involves identifying and analyzing potential risks that may affect the achievement of organizational objectives.
3. Information and communication: This ensures that relevant information is identified, captured, and communicated to enable effective internal control.
4. Monitoring activities: This involves ongoing assessments, evaluations, and observations to ensure that internal controls are functioning effectively.

The component that is not part of internal control is control activities. Control activities are the policies and procedures implemented by management to ensure that the organization's objectives are achieved.