Question

Which of the following is not an element of internal control?

1) control procedures
2) risk assessment
3) monitoring activities
4) financial statements

Answer 1

The element not related to internal control is financial statements. Control procedures, risk assessment, and monitoring activities are all parts of the internal control system, according to the COSO framework.

Step-by-step explanation:

The element that is not an element of internal control among the options provided is 4) financial statements. The components of internal control according to the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework include 1) control procedures, 2) risk assessment, 3) monitoring activities, along with information and communication, and the control environment. Financial statements, however, are the reports that result from the accounting process and are not a control mechanism themselves.