Directions:

The Committee of Sponsoring Organizations of the Treadway Commission $($COSO$)$ is a joint initiative of five private sector

organizations. It provides leadership through the development of frameworks and guidance on enterprise risk management,

internal control, and fraud deterrence. COSO is widely recognized for its model of internal control and its framework for

enterprise risk management.

Discuss the five components of internal control $($Control Environment, Risk Assessment, Control Activities, Info

rmation & Communication, and Monitoring Activities$).$

How can internal controls be used to mitigate risks within an organization? Provide an example.