AFR Company's internal audit function recently completed several audits of the company's various employee benefit plans. The internal auditors' working papers contain the following audit observation:

Savings Plan Contributions Made to Ineligible Employee's Accounts

AFR Company has an employee savings plan that provides a matching contribution to participating employee's savings accounts. When an employee stops participating in the plan, the company suspends matching contributions. During the internal audit function's examination of the plan, we found that the company was still making contributions to the accounts of a number of employees who had ceased to participate. More than US $85,000 had been contributed to such accounts. Management now is trying to recover erroneous company contributions.Required: Audit observations are pertinent statements of fact that support auditors' conclusions and recommendations. In addition to clearly identifying the issue or question being examined, all well-written observations should include the following elements: criterion/criteria, condition(s), effect(s), and cause(s). For a-d, either write the specific passage from the observation that contains each element or state that the element was not covered in the observation.

a) Criterion/criteria b) Condition(s) c) Effect(s) d) Cause(s)