Describe the five components of internal control

Benefits

•  Consistent application of predefined business rules and performance of complex calculations in processing large volumes of transactions or data.
• Enhancement of the timeliness, availability, and accuracy of information.
•  Facilitation of additional analysis of information.
•  Enhancement of the ability to monitor the performance of the entity activities and its policies and procedures.
• Reduction in the risk that controls will be circumvented.
•  Enhancement of the ability to achieve effective segregation of duties by implementing security controls in applications, databases, and operating systems
  Risks:
• Reliance on systems or programs that inaccurately process data, process inaccurate data, or both
  Unauthorized access to data that may result in destruction of data or improper changes to data, including the recording of unauthorized or nonexistent transactions or inaccurate recording of transactions.
• Unauthorized changes to data in master files.
•  Unauthorized changes to systems or programs.
• Failure to make necessary changes to systems or programs.
•  Inappropriate manual intervention.
•  Potential loss of data.