Internal controls can be categorized using the following framework. 1. Control environment 2. Risk assessment 3. Information and communication 4. Control activities 4.1. Authorization 4.2. Segregation of duties 4.3. Information processing controls 4.3.1. Computer general controls 4.3.2. Computer application controls 4.3.3. Controls over the financial reporting process 4.4. Physical controls 4.5. Performance reviews 4.6. Controls over management discretion in financial reporting 5. Monitoring 6. Antifraud programs and controls Following is a list of controls prescribed by Waterfront, Inc. a. Management has established a code of conduct that includes rules regarding conflicts of interest for purchasing agents. b. Waterfront has established a disclosure committee to review the selection of new accounting policies. c. Any computer program revision must be approved by user departments after testing the entire program with test data. d. The managers of each of Waterfront