Match the following five items (a-e) with the definitions provided below (1-5)

a. Risk assessment

b. Monitoring

c. Information and communication

d. Control environment

e. Control activities _____ 1. The actions, policies, and procedures that reflect the overall attitudes of top management, directors, and owners of an entity regarding internal control and its importance to the entity.

_____ 2. Policies and procedures that help ensure that necessary actions are taken to address risks in the achievement of the entity’s objectives.

_____ 3. Management’s ongoing and periodic assessment of the quality of internal control performance to determine that controls are operating as intended and are modified when needed.

_____ 4. Management’s identification and analysis of risks relevant to the preparation of financial statements in accordance with an applicable accounting framework.

_____ 5. The purpose of the entity’s system is to initiate, record, process, and report the entity’s transactions and to maintain accountability for the related assets.

AppendixLO1