Question 25-26 all of the requirements

07-2 organization's internal comret In designing internal control, management must consider controls related to each of the fios major internal control components: the control environment, risk assessment, the accounting information system, control activities, and monitoring. ed. a. Management is considering controls for the following three control environment factor For each, describe how the factor contributes to effective internal control. (1) Integrity and ethical values. (2) Commitment to competence. (3) Board independence and effective oversight. b. Explain how risk assessment contributes to effective internal control, and identify four fact tors that result in increased financial reporting risk. c. Identify the five major objectives of an accounting information system. d. Describe the purpose of the following two types of control activities. (1) Performance reviews. (2) transaction processing. e. Explain the two types of monitoring and provide an example of each. 7-25. The definition of internal control as contained in COSO's Internal Control-Integrated Frame- work and the professional standards is quite broad and comprehensive. a. Define internal control and its purpose. b. Explain the major concepts that are included in the definition of internal control. c. List and describe the five components of internal control. d. Identify the major limitations of internal control. Auditors may restrict substantive procedures based on the results of tests of controls. a. Discuss and contrast the concepts of the planned assessment of control risk and the revised assessment of the risk after tests of controls have been performed. b. Using internal control for the existence assertion for accounts receivable, provide an example that distinguishes among the concepts discussed in part (a) above