Match each slide discussion item Number (1 - 18) which shows as picturesand match with its equivalent illustration (A - R), which shows below. Each slide item 1-18 will be associated with just one letter A-R.

illustration of A_R

P-in conformity with the US generally accepted accounting principles.

B-We are a public accounting firm registered with the PCAON and are required to be independent with respect to the company.

N-We conducted our audits in accordance with the standards of PCAOB.

H-Whether the financial statements are free of materials misstatement

I-Whether due to error or fraud

Q -The committee of Sponsoring Organizations of the Treadway Commision

G-2013 Framework (the COSO criteria)

R -The companys management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control.

D-Our audit included obtaining an understanding of internal control over financial reporting

F -Performing such other procedures as we considered necessary in the circumstance.

A -A companys internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting

K-Regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets

J-Projection of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate

E-The company has appropriately considered these changes in its design of and testing for effectiveness of internal controls over financial reporting and concluded, as part of the evaluation described in the above paragraph, that the implementation of the new ERP in these circumstances has not materially affected its internal control over financial reporting.

C- based on the framework set forth in internal control integrated framework

O-Based on this assessment management concluded that the companys internal control over financial reporting was effective as of Dec 31, 2018.

Thanks for answering and i will thumb up!

o Internal Control Process designed to provide reasonable assurance that organizational objectives are met - Process Ongoing process but effectiveness is a state or condition at a point in time Needs to be "built in" - Reasonable Assurance Absolute assurance would be ideal, but Reasonable assurance is more realistic Can't guarantee fraud will not occur 3. Internal Control Process designed to provide reasonable assurance that organizational objectives are met - Organizational Objectives Quality of data Effectiveness and efficiency of operations . Compliance with applicable laws and regulations will be achieved Internal Control weaknesses create opportunities for Unintentional Mistakes # # Outside Interest in Internal Control - Sarbanes-Oxley Act of 2002 (SOX) Protect investors by improving transparency of corporate disclosures issued by publicly-held companies Established the Public Company Accounting Oversight Board (PCAOB) to issue auditing standards, oversee quality control and set independence standards (5 404(a) discusses management's responsibilities with regard to the establishment, maintenance, and assessment of the internal control system Focus on "Key" controls related to reliability of financial reporting The internal control system must be attested to by executive management 8 Report must be issued with annual audited financial statements to certify mgmt's responsibility and Indentify the framework on which the system is evaluated (9 Outside Interest in Internal Control 10 Sarbanes-Oxley Act of 2002 (SOX) 404(b) - addresses the independent auditor's issuance of an opinion on management's report of the internal controls of the company Separate from the general audit opinion Type of opinion on internal controls can be different from opinion on fairness of the financial statements Outside Interest in Internal Control 3. External Auditors Interested in internal control so they can express an opinion on the financial statements Must follow SAS (Statement on Auditing Standards) and now other PCAOB standards - If Internal Control is ineffective, an auditor's opinion must be substantiated by testing accounting records; if effective, auditor's can reduce the level of testing Outside Interest in Internal Control 3. External Auditors Specific documents: AICPA Statement on Auditing Standard (SAS) 94 - requires auditor to obtain an understanding of internal control sufficient to plan the audit AICPA Statement on Auditing Standard (SAS) 104-111 - requires auditors to understand the IT environment as it relates to the financial 13 019 Outside Interest in Internal Control 3. External Auditors Specific documents: PCAOB AS 2201 - addresses the auditor's responsibility 13) to determine any material misstatements, examples of entity-level controls include: - Internal control environment - Management override capability - Risk assessment performance by organization -- Centralized processing - Monitoring of operational results - Internal auditing, audit committee as monitors - Perlod-end reporting processes - Policies to address changes in risk TE 4. Professional Organizations - The Committee of Sponsoring Organizations of the 15 Treadway Commission's Internal Control-integrated Framework (IC) Committee was organized in response to fraudulent financial reporting in the late 70's and 80's Developed a common definition and framework of internal control 1992 Issued Internal Control-Integrated Framework This report established a common definition for internal control and provides a standard for assessing internal control May 2013 - COSO 2013 - updated and is now the 116 internal control framework required for publicly traded companies (18 Organizational Objectives 1. Effective and Efficiency of Operations - Fundamental operations -- Responsive to changes in competition/technology 0 - Safeguarding assets against loss 2. Reliability of Reporting - Internal and External reporting - Financial and Non-Financial -- Accurate, current, complete, relevant, accessible, and confidential 8-Adhers to GAAP 3. Compliance - Comply with applicable laws and regulations o Internal Control Process designed to provide reasonable assurance that organizational objectives are met - Process Ongoing process but effectiveness is a state or condition at a point in time Needs to be "built in" - Reasonable Assurance Absolute assurance would be ideal, but Reasonable assurance is more realistic Can't guarantee fraud will not occur 3. Internal Control Process designed to provide reasonable assurance that organizational objectives are met - Organizational Objectives Quality of data Effectiveness and efficiency of operations . Compliance with applicable laws and regulations will be achieved Internal Control weaknesses create opportunities for Unintentional Mistakes # # Outside Interest in Internal Control - Sarbanes-Oxley Act of 2002 (SOX) Protect investors by improving transparency of corporate disclosures issued by publicly-held companies Established the Public Company Accounting Oversight Board (PCAOB) to issue auditing standards, oversee quality control and set independence standards (5 404(a) discusses management's responsibilities with regard to the establishment, maintenance, and assessment of the internal control system Focus on "Key" controls related to reliability of financial reporting The internal control system must be attested to by executive management 8 Report must be issued with annual audited financial statements to certify mgmt's responsibility and Indentify the framework on which the system is evaluated (9 Outside Interest in Internal Control 10 Sarbanes-Oxley Act of 2002 (SOX) 404(b) - addresses the independent auditor's issuance of an opinion on management's report of the internal controls of the company Separate from the general audit opinion Type of opinion on internal controls can be different from opinion on fairness of the financial statements Outside Interest in Internal Control 3. External Auditors Interested in internal control so they can express an opinion on the financial statements Must follow SAS (Statement on Auditing Standards) and now other PCAOB standards - If Internal Control is ineffective, an auditor's opinion must be substantiated by testing accounting records; if effective, auditor's can reduce the level of testing Outside Interest in Internal Control 3. External Auditors Specific documents: AICPA Statement on Auditing Standard (SAS) 94 - requires auditor to obtain an understanding of internal control sufficient to plan the audit AICPA Statement on Auditing Standard (SAS) 104-111 - requires auditors to understand the IT environment as it relates to the financial 13 019 Outside Interest in Internal Control 3. External Auditors Specific documents: PCAOB AS 2201 - addresses the auditor's responsibility 13) to determine any material misstatements, examples of entity-level controls include: - Internal control environment - Management override capability - Risk assessment performance by organization -- Centralized processing - Monitoring of operational results - Internal auditing, audit committee as monitors - Perlod-end reporting processes - Policies to address changes in risk TE 4. Professional Organizations - The Committee of Sponsoring Organizations of the 15 Treadway Commission's Internal Control-integrated Framework (IC) Committee was organized in response to fraudulent financial reporting in the late 70's and 80's Developed a common definition and framework of internal control 1992 Issued Internal Control-Integrated Framework This report established a common definition for internal control and provides a standard for assessing internal control May 2013 - COSO 2013 - updated and is now the 116 internal control framework required for publicly traded companies (18 Organizational Objectives 1. Effective and Efficiency of Operations - Fundamental operations -- Responsive to changes in competition/technology 0 - Safeguarding assets against loss 2. Reliability of Reporting - Internal and External reporting - Financial and Non-Financial -- Accurate, current, complete, relevant, accessible, and confidential 8-Adhers to GAAP 3. Compliance - Comply with applicable laws and regulations