Match each Control in Column $2$ with

a$.$ One or more Internal Control Objectives from Column $1.$

b$.$ The single most appropriate Internal Control Component from Column $1.$

Column $2$: Controls Implemented For Firm ABC

The executive team meets quarterly to review all business risks $($including the potential for fraud$),$ implements risk

responses, and manages risk, including making changes to the system of internal control.

The executive team meets each month to review the monthly financial statements and accounting ratios provided by the

controller and approved by the CFO. The main objective of this review is to see whether the firm has met operational and

financial performance goals.

The employee who performs bank reconciliations is someone other than the employees who handle cash and generate

payments from the firm.

Management implemented a code of ethics, which includes policies on conflicts of interest. All employees, including

executives, electronically sign an acknowledgment that they have read, understand, and agree to abide by the code.

Management implemented continuous monitoring over the call center to confirm that the call center answers the calls in a

timely manner.

Strong controls are in place to ensure proper accounting for and timely payment of statutory payroll deductions, like $(1)$

federal, state, and local income taxes and $(2)$ social security and Medicare deductions and firm contributions, to the

respective governmental agencies.

The human resources department has processes in place to ensure that employees at all levels have the qualifications,

experience, and training to efficiently and effectively perform their work.

There are controls in place to ensure that the audit committee receives reports in a timely manner on internal control

deficiencies identified by the internal audit department.

Column $2$: Controls

Implemented For

Firm ABC

Internal Control Objectives

Onerations

Reborting

Operations

Operations, reporting and compliance objectives

Operations and reporting obiectives

Compliance

Combliance

Operations. reporting and compliance obiectives

Internal Control Component

Risk assessment

Information and communication

Control activities

Control environment

Monitoring

Control activities

Control environment

Monitoring