Accounting 25th Edition by Carl Warren, James Reeve, Jonathan Duchac

Exercise 1

Internal control elements
Identify each of the following as relating to (a) the control environment, (b) control procedures, or (c) information and communication.
1. Management's philosophy and operating style
2. Report of company's conformity with environmental laws and regulations
3. Separating related operations
Internal control elements
Identify each of the following as relating to (a) the control environment, (b) control procedures, or (c) monitoring.
1. Hiring of external auditors to review the adequacy of controls
2. Personnel policies
3. Safeguarding inventory in a locked warehouse