Match the items with the related statements that follow.
a. Internal control
b. A need of internal control
c. Management’s responsibility
d. Independent accountant’s audit
1. Evaluates management’s assessment of internal control over financial reporting.
2. A process that establishes reliability of accounting records and financial statements in accordance with GAAP.
3. Many assets such as cash and inventories are at risk of loss.
4. Establishes a system of internal control and assesses its effectiveness