The component of internal control that includes the policies and procedures that help ensure that management's directives are being carried out is:
A)Monitoring.
B)Information and communication.
C)Risk assessment.
D)Control activities.

Question

Quizplus · Accepted Answer

Control activities are the policies and procedures put in place to ensure that management's directives are being carried out. These activities include authorization and approval procedures, segregation of duties, physical controls, and IT controls. Monitoring is a separate component that involves ongoing assessment of the effectiveness of internal control over time. Information and communication and risk assessment are also components of internal control but are not directly related to ensuring that management's directives are being followed.

The Component of Internal Control That Includes the Policies and Procedures