Which of the following is NOT a component of internal control by COSO?

The concept of internal control, as established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), consists of five interconnected components: the control environment, risk assessment, control activities, information and communication, and monitoring activities.

Human resources management, while important in many organizational contexts, is not considered a formal component of the internal control framework outlined by COSO. The control environment refers to the overall attitude, awareness, and actions of management and the board regarding the importance of internal controls, setting the tone for the organization. Monitoring involves ongoing or separate evaluations of the internal control system to ensure it is functioning properly. Information and communication are critical for ensuring that relevant information flows effectively through the organization, fostering accountability and informed decision-making.

Therefore, identifying human resources management as the component that does not belong within the COSO framework aligns with the understanding that while it is vital for overall organizational effectiveness, it is not defined as part of the internal control structure according to COSO guidelines.