Reference no: EM133041387

Question - Listed below are controls that have been developed by the management of ABC Corp.

1. Management surveys customers about their satisfaction with the company's service.

2. The human resources department investigates the educational background of prospective employees.

3. Invoices are reviewed for accuracy before they are mailed to customers.

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

5. The internal auditors periodically evaluate the controls in the various departments of the company.

6. Management has developed and distributed a code of conduct.

7. Budgets and forecasts are used by the production departments to control expenses.

8. The accounting department uses a manual of accounting policies and procedures.

9. Entry into the warehouse is strictly controlled by security personnel.

10. Management has prepared and distributed an organizational chart.

Required - For each of the controls, identify the internal control component to which it relates and why.