Situation A: In the following set of situations, you must identify each of them within one of the elements of an internal controls structure. The elements of the structure of internal controls are:

Control Environmental Using Letter E

Risk Assessment Using Letter R

Control Activities Using Letter A

Information and Communications Using Letter I

Monitoring Using Letter M

__A. The internal auditors periodically evaluate the controls in the various departments of the Wal-Mart Co.

__B. Wal-Mart Cos managements compares actual performances with budgets and forecasts.

__C. The accounting department in Wal-Mart Co. uses a manual of accounting policies and procedures for prepare the financial statements.

__D. Wal-Mart human resources department investigates the educational background of prospective employees.

__E. The CEO and CFO of Wal-Mart Co. weekly check the fluctuation of shares in the stock market.

__F. Authorizes personnel are the only to access the warehouse including security personnel.

__G. Management surveys customers about their satisfaction with the companys service.

__H. Management periodically evaluates the threats to preparing reliable financial statements.

__I. The auditors uses their understanding of the clients information system to identify material misstatement.

__J. The chart of accounts of Wal-Mart Co. is a classified listing of all accounts in use.

__K. Check the cash balance by asking the manager of the Popular Bank Inc. where the company maintains its cash accounts.

__L. Review of the cash received from the clients of the audited company against the cash transactions in the general journal.

__M. Making calls to suppliers to check the balance of the invoices related to the accounts payable of Wal-Mart Co.

__N. Review of trial balances adjusted balance of the company that is being audited.

__O. Meeting with the members of the board of directors of Wal-Mart Co. to identify the latest changes in products that the company has offered to its consumers.