Chapter 11, Problem 22.3MCQ

Which of the following correctly describes an internal control component?

1. (1) Control activities set the tone of the organization.
2. (2) Information and communication systems have to do with management’s analysis of risk.
3. (3) Risk assessment relates to assessing the quality of the internal control structure overtime.
4. (4) Monitoring relates to ongoing assessment by management to determine whether controls are operating as intended.