The Framework views all components of internal control as suitable and relevant to all entities.

Principles are fundamental concepts associated with components. As such, the Framework views the seventeen principles as suitable to all entities. The Framework presumes that principles are relevant because they have a significant bearing on the presence and functioning of an associated component. Accordingly, if a relevant principle is not present and functioning, the associated component cannot be present and functioning.

There may be a rare industry, operating, or regulatory situation in which management has determined that a principle is not relevant to a component. Considerations in applying this judgment may include the entity structure recognizing any legal, regulatory, industry, or contractual requirements for governance of the entity, and the level of use and dependence on technology used by the entity. Management must support its determination that a principle is not relevant with the rationale of how, in the absence of that principle, the associated component can be present and functioning.