Final Answer:
The five components of internal control under the COSO (Committee of Sponsoring Organizations of the Treadway Commission) framework are Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring Activities.
Step-by-step explanation:
Control Environment: This involves setting the tone at the top, establishing a culture of control consciousness, and creating an environment where employees understand the importance of internal control.
Risk Assessment: It involves identifying and assessing risks relevant to achieving organizational objectives. This includes understanding potential events that could affect the achievement of objectives.
Control Activities: These are the policies and procedures put in place to address identified risks and achieve the organization's objectives. Control activities can be preventive or detective in nature.
Information and Communication: It involves the flow of relevant information, both internally and externally, to support the functioning of other components of internal control.
Monitoring Activities: This component ensures that internal controls are functioning as intended over time. It involves ongoing evaluations and separate evaluations to identify and address deficiencies.