Information and Communication
Uses Relevant Information
The organization obtains or generates and usesrelevant, quality information to support thefunctioning of other components of internal control. Information Requirements
Internal Control Component| Example of Information Used| Control Environment| Management performs an annual entity-wide survey of its employ-ees to gather information about their personal conduct in relationto the entity’s code of conduct. The survey is part of a processthat produces information to support the control environmentcomponent and may also provide input into the selection, develop-ment, implementation, or maintenance of control activities.| Risk Assessment| As a result of changes in customer demands, an entity changesits product mix and delivery mechanisms. Expanded on-line saleshave caused credit card transactions to increase significantly.To assess the risk of non-compliance with security and privacyregulations associated with credit card information, managementgathers information about the number of transactions, overallvalue, and nature of data retained for the last fiscal year and evalu-ates its significance in conducting its risk analysis.| Control Activities|...