Which of the following is NOT one of the five components of internal control as defined by the COSO framework?

• A. Information and Communication
• B. Control Environment
• C. Financial Reporting
• D. Risk Assessment

Answer: (C)

Verified step by step guidance

1. Understand the COSO framework: The Committee of Sponsoring Organizations of the Treadway Commission (COSO) developed a framework for internal control, which includes five key components. These components are designed to help organizations achieve their objectives related to operations, reporting, and compliance.
2. Identify the five components of internal control: The COSO framework defines the following components: Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring Activities.
3. Compare the options provided in the question with the five components of the COSO framework: The options are Information and Communication, Control Environment, Financial Reporting, and Risk Assessment.
4. Recognize that 'Financial Reporting' is not one of the five components of internal control: While financial reporting is an important aspect of organizational operations, it is not explicitly listed as a component in the COSO framework.
5. Conclude that the correct answer is 'Financial Reporting,' as it does not belong to the five components of internal control defined by the COSO framework.