Framework for Internal Control

The Framework for Internal Control is a system designed to help organizations manage risks and achieve their goals effectively. It consists of five key components: control environment (the organization's culture and values), risk assessment (identifying potential issues), control activities (policies and procedures to address risks), information and communication (sharing relevant information internally and externally), and monitoring (regularly checking and improving the system). Together, these elements ensure that an organization operates efficiently, complies with laws, safeguards its assets, and ensures accurate financial reporting.