Final answer:
The five internal control components that auditors must consider are control environment, risk assessment, control activities, information and communication, and monitoring activities.
Step-by-step explanation:
The five internal control components that auditors must consider are: control environment, risk assessment, control activities, information and communication, and monitoring activities.
The control environment refers to the overall attitude and awareness of internal controls within an organization. It includes management's integrity and ethical values, as well as the commitment to competence and accountability.
Risk assessment involves identifying and assessing potential risks that could affect the achievement of an organization's objectives. This includes evaluating the likelihood and impact of potential risks and determining how to manage them.
Control activities are the policies and procedures that an organization implements to address the identified risks. These activities help ensure that the organization's objectives are achieved and that assets are safeguarded.
Information and communication relates to the systems and processes that provide relevant, reliable, and timely information to support decision-making. Effective communication within the organization is also important to ensure that information is shared appropriately.
Monitoring activities involve ongoing monitoring of internal controls to assess their effectiveness. This includes regular internal audits and management reviews to identify any weaknesses or areas for improvement.