Lesson: Information and Communication

In this lesson, Nick Palazzolo, CPA, breaks down the components of effective information and communication within the context of internal controls. He illustrates the process of how entities should gather useful and timely information, which is crucial for supporting and reinforcing internal controls. To enhance understanding, Nick outlines the importance of sharing this information, not just within the organization but also with external parties. This includes drawing attention to specific areas such as potential fraud risks in certain departments and the ways in which communication with parties like lawyers, external accountants, and banks plays a critical role. Furthermore, Nick ensures to clarify the three key steps that encapsulate the information and communication process, making it easier to grasp and remember.