Describe and explain the five components of internal controlthe control environmentthe entity's risk assessment processthe entity’s process to monitor the system of internal controlthe information system and communicationscontrol activities.

Control Environment: This is the foundation of all the other components of internal control. It sets the tone of an organization and influences the control consciousness of its people. It includes factors such as integrity, ethical values, management's operating style, delegation of authority systems, and the processes for managing and developing people in the organization.

Risk Assessment: This is the entity's identification and analysis of relevant risks to the achievement of its objectives, forming a basis for determining how the risks should be managed. It involves a dynamic and iterative process for identifying and assessing risks to the achievement of objectives.

Monitoring of Controls: This involves assessing the quality of the system's performance over time. It includes ongoing monitoring activities or separate evaluations. Internal control deficiencies should be reported upstream, with serious matters reported to top management and the board.

Information and Communication: Pertinent information must be identified, captured, and communicated in a form and timeframe that enables people to carry out their responsibilities. Effective communication also must occur in a broader sense, flowing down, across, and up the organization.

Control Activities: These are the policies and procedures that help ensure management directives are carried out. They help ensure that necessary actions are taken to address risks to the achievement of the entity's objectives. Control activities occur throughout the organization, at all levels and in all functions. They include a range of activities as diverse as approvals, authorizations, verifications, reconciliations, reviews of operating performance, security of assets, and segregation of duties.