Certified Fraud Examiner Practice Exam 2025 – All-in-One Guide to Master Your Certification!

The COSO Internal Control Integrated Framework consists of five core components that together provide a comprehensive approach to effective internal control systems. The correct answer includes Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring activities.

- **Control Environment** sets the tone at the top of an organization, influencing how the organization's members approach internal controls and risk management. It includes governance structures, ethics policies, and the culture of accountability.

- **Risk Assessment** involves identifying and analyzing relevant risks to achieving the organization's objectives. It's crucial for determining how those risks may affect the ability to meet strategic goals.

- **Control Activities** are the actions taken to mitigate risks and ensure that management's directives are carried out. These can include policies, procedures, and mechanisms to ensure that appropriate actions are taken to address risks.

- **Information and Communication** facilitates the timely, relevant, and efficient dissemination of information needed to manage and control operations. This ensures that all stakeholders are aware of their roles in the internal control process.

- **Monitoring** is the process of ongoing or separate evaluations to determine whether the internal control system is operating as intended and whether it is modified as appropriate for changes in conditions.

This structured approach is essential for organizations to achieve their objectives effectively