E All of the above 2 A Companys internal control system woul

E All of the above 2. A Company\'s internal control system would include these primary components EXCEPT: A) A control environment B) Information and communication C) Control activities D) Routine software and hardware upgrades E) Risk assessments 3. The principles of control activities include: A) Independent internal verification and human resource controls B) Segregation of duties and establishment of responsibilities C) Physical controls and document procedures D B and C Only E) A, B and C

Solution

2)

As per ISA 315, there are 5 components of internal control systems which are as follows:

!) Control Environment

II) Risk assessment process

III) Information System

IV) Control Activities

V) Monitoring of controls

Since routine software and hardware upgrades are not the primary components of the internal control system.

Therefore option (D) is correct.