An Entity's Internal Controls Consist of Five Interrelated Components (Plus

question 68

Short Answer

An entity's internal controls consist of five interrelated components (plus an overriding concern with fraud prevention and detection):A:control environment
B:risk assessment
C:information and communication
D:control activities
E:monitoring
REQUIRED: Using the appropriate letter, identify the component to which each of the following control activities or considerations pertains.
1.Performance reviews
2.Commitment to competence
3.System should provide a complete audit or transaction trail
4.Integrity and ethical values
5.Access controls
6.Changes in operating environment
7.Board of directors and audit committee
8.Segregation of duties
9.Organizational structure
10.Reporting exceptions for follow-up
11.Management's philosophy and operating style
12.Internal audit function
13.Physical controls
14.New accounting pronouncements
15.Assignment of authority and responsibility
16.Human resource policies and procedures
17.Organization and operation control
18.Input controls
19.Data and procedural controls
20.Processing controls

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Definitions:

Cohesive

Characterizes a group that is united and works well together, showing a high level of camaraderie and shared goals.

Conflict Escalation

The process by which disputes or conflicts grow in severity and magnitude, potentially becoming more difficult to resolve.

Conflict De-escalation

Strategies or actions aimed at reducing the intensity, hostility, or severity of a dispute to prevent further escalation.

Routine Interaction

Regular and repetitive interactions that occur in a set pattern among individuals or groups within social settings.