Which component of COSO's Internal Control-Integrated Framework involves the exchange of information among employees?

The component of COSO's Internal Control-Integrated Framework that focuses on the exchange of information among employees is information and communication. This element emphasizes the importance of accurate, timely, and relevant information being disseminated across an organization to support effective decision-making and facilitate the functioning of other internal control components.

Effective communication ensures that employees are informed about their responsibilities, the organization's objectives, and the risks involved, which in turn enhances their ability to achieve those objectives while mitigating fraud risks. This component also addresses how information is captured and shared both internally and externally, ensuring that all stakeholders have access to what they need when they need it to maintain control and compliance.

In contrast, the other components—such as information technology—pertain more to the systems and tools that support information processing rather than the communication aspect itself. Risk assessment focuses on identifying and analyzing risks, while control activities involve the policies and procedures that help ensure that management directives are carried out. While all these components are essential for a robust internal control system, it is the information and communication component specifically that deals with the flow of information within the organization.