The following are general questions about internal control. Choose the best response.

a. Which of the following correctly describes an internal control component?

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

b. Which of the following situations is not an example of an inherent limitation of internal control?

1. A programming error in the design of an automated control allows an employee to give himself an unauthorized pay increase.
2. Management’s failure to enforce control policies surrounding access to inventory allows employees to steal assets.
3. A lack of physical controls over the safeguarding of assets allows an employee to steal company assets.
4. A fraud scheme whereby an employee orders personal goods and his supervisor, who is in on the scheme, signs the checks to pay for those goods.

c. Which of the following factors are included in an entity’s control environment?

Participation of those charged with Gevernance; Integrity and Ethical Values; Organizational Structure

1. Yes; Yes; No
2. Yes; Yes; Yes
3. No; Yes; Yes
4. Yes; No; Yes

This problem has been solved! see the answercompute and interpret altman's z-scoresfollowing is selected financial information for ebay, for its fiscal years 2005 and 2006.(in millions, except per share data) 2006 2005current assets $ 4,970.59 $ 3,183.24current liabilities 2,518.39 1,484.93total assets 13,494.01 11,788.99total liabilities 2,589.38 1,741.00shares outstanding 1,368.51 1,404.18retained earnings 4,538.35 2,819.64stock price per share 30.07 43.22sales 5,969.74 4,552.40earnings before interest and taxes 1,439.77 1,445.18compute and interpret altman z-scores for the company for both years. (do not round until your final answer; then round your answers to two decimal places.)2006 z-score = answer2005 z-score = answerwhich of the following best describes the company's likelihood to go bankrupt given the z-score in 2006 compared to 2007.the z-score in 2006 is half of the 2005 score. both z-scores are well above the score that represents a healthy company.the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly increased the risk of bankruptcy.the z-score in 2006 is half of the 2005 score. the z-score has decreased sharply, which suggests the company is in financial distress.the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly lowered the risk of bankruptcy.