Indicate whether each of the following statements regarding internal controls is true or false. a) Internal control is the process designed to ensure reliable financial reporting, effective and efficient operations, and compliance with applicable laws and regulations. b) Safeguarding assets against theft and unauthorized use, acquisition, or disposal is not part of an internal control system. c) The mechanics of internal control systems do not vary from company to company. d) The Committee of Sponsoring Organizations' (COSO) framework recognizes five interrelated components of internal control including: control environment, risk assessment, control activities, information and communication, and monitoring. e) Whenever possible, the functions of authorization, recording, and custody of assets should be performed by the same individual. 4

Indicate whether each of the following statements regarding internal controls is true or false. a) Internal control is the process designed to ensure reliable financial reporting, effective and efficient operations, and compliance with applicable laws and regulations. b) Safeguarding assets against theft and unauthorized use, acquisition, or disposal is not part of an internal control system. c) The mechanics of internal control systems do not vary from company to company. d) The Committee of Sponsoring Organizations' (COSO) framework recognizes five interrelated components of internal control including: control environment, risk assessment, control activities, information and communication, and monitoring. e) Whenever possible, the functions of authorization, recording, and custody of assets should be performed by the same individual