These various items can be seen illustrated in both the Management's and Auditor's reports included in the Archer Daniels Midland (ADM) annual report labeled A - R.

Match each slide discussion item (1 - 18) to its equivalent illustration in the ADM reports (A - R). 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 company’s 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 company’s 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 company’s 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 company’s internal control over financial reporting was effective as of Dec 31, 2018.

 
 
 

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 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 forf & Unintentional Mistakes 3