Which of the following is NOT one of the five components of internal control?

The five components of internal control, as established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), are designed to provide a framework for organizations to manage risks and achieve their objectives. The first component is the Control Environment, which sets the tone for the organization and influences the control consciousness of its people. The second component, Risk Assessment, involves identifying and analyzing relevant risks to the achievement of objectives. The third component, Control Activities, consists of the policies and procedures that help ensure that management directives are carried out, and the fourth is Information and Communication, which ensures timely and relevant information flows throughout the organization. The final component is Monitoring, which involves the ongoing evaluation of the internal control system to ensure it is functioning as intended.

Financial Reporting, while an essential area within an organization, is not one of the formal components of internal control. Instead, it is generally seen as an output or aspect of the controls that the internal control framework aims to address, rather than a core component itself. Thus, this distinction reinforces the focus on the five fundamental elements that work together to create a strong internal control system.