gnments 1 EXERCISES: SET B L01 Components of Internal Control E1B. Match the items with the related statements that follow. a. Control environment 1. The company has an internal audit b. Risk assessment department. c. Control activities 2. Management encourages employees to d. Information and communication follow the rules. e. Monitoring 3. Management regularly considers what losses the company might face. 4. Management puts separation of duties in place. 5. The company gathers appropriate information and communicates it to employees. 6. Personnel are well trained and instructed in their duties. 7. The company employs good physical controls 8. Managers are observant and review how procedures by those who report to them are carried out. 9. The company has a good accounting system