The document outlines the identification of control objectives and components of an internal control framework for firm ABC, categorizing them as control objectives or components such as operations, risk assessment, and compliance. It details specific controls implemented by management, including risk management practices and regular financial reviews. Additionally, it emphasizes the importance of ethics, monitoring, and proper employee qualifications in maintaining robust internal controls.

1. For the items listed in Column 1, identify each as a control objective or as one of the interrelated
components of the internal control framework. Then, for the interrelated components, list them in
the correct sequential order.
Components A. Operations B. Risk assessment C. Monitoring D. Information and
communication E. Compliance F. Control activities G. Control environment Column 2: Controls
Implemented For Firm ABC 1. The executive team meets quarterly to review all business risks
(including the potential for fraud), implements risk responses, and manages risk, including
making changes to the system of internal control. 2. The executive team meets each month to
review the monthly financial statements and accounting ratios provided by the controller and
approved by the CFO. The main objective of this review is to see whether the firm has met
operational and financial performance goals. 3. The employee who performs bank reconciliations
is someone other than the employees who handle cash and generate payments from the firm. 4.
Management implemented a code of ethics, which includes policies on conflicts of interest. All
employees, including executives, electronically sign an acknowledgment that they have read,
understand, and agree to abide by the code. 5. Management implemented continuous monitoring
over the call center to confirm that the call center answers the calls in a timely manner. 6. Strong
controls are in place to ensure proper accounting for and timely payment of statutory payroll
deductions, like (1) federal, state, and local income taxes and (2) social security and Medicare
deductions and firm contributions, to the respective governmental agencies. 7. The human
resources department has processes in place to ensure that employees at all levels have the
qualifications, experience, and training to efficiently and effectively perform their work. 8. There
are controls in place to ensure that the audit committee receives reports in a timely manner on
internal control deficiencies identified by the internal audit department.