The document outlines the essential elements of an internal control structure, emphasizing the need for segregation of duties, risk assessment, and effective communication systems. It highlights the role of the board of directors in maintaining oversight, ensuring independence from management, and the importance of monitoring activities. Additionally, it discusses the necessity of periodic audits to assess and improve the internal control framework.

1. Elements of Internal Control Structure Identify the related internal control element that relate to
each asseveration.Segregate authorization, recording and custody of assets.Risk
AssessmentInformation and Communication SystemsControl EnvironmentMonitoring
ActivitiesExisting Control ActivitiesBoard of directors demonstrates independence from
management and exercises oversight of internal control.Risk AssessmentInformation and
Communication SystemsControl EnvironmentMonitoring ActivitiesExisting Control
ActivitiesPresent properly the transactions and related disclosures in the financial
statements.Risk AssessmentInformation and Communication SystemsControl
EnvironmentMonitoring ActivitiesExisting Control ActivitiesIdentify and assess changes that
could impact internal control.Risk AssessmentInformation and Communication SystemsControl
EnvironmentMonitoring ActivitiesExisting Control ActivitiesPerformance of periodic audits by
internal audit.