For each of the following descriptions of internal controls, select which of the five COSO (Committee of Sponsoring Organizations of the Treadway Commission) internal control components (1?Control environment, 2?Risk assessment, 3?Control activities, 4?Information and communication, 5?Monitoring) is best represented by each internal control.

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Description of Internal Control The company's computer systems track individual transactions and automatically accumulate transactions to create a trial balance. coso IC Component On a monthly basis, department heads review a budget to actual performance report and investigate unusual differences. Description of Internal Control COSO IC Component The company must receive university transcripts documenting all degrees earmed before an individual can begin the first day of employment with the company. Senior management obtains data about external events that might affect the entity and evaluates the impact of that information on its existing accounting processes. Each quarter, department managers are required to perform a self- assessment of the department's compliance with company policies. Reports summarizing the results are to be submitted to the senior executive overseeing that department. Before a cash disbursement can be processed, all payee information must be verified by matching the payee to the company's approved vendor listing. The system automatically reconciles the detailed accounts receivable subsidiary ledger to the accounts receivable general ledger account on a daily basis. The company has developed a comprehensive series of accounting policies and procedures manuals to help provide detailed instructions to employees about how controls are to be performed. The company has an organizational chart that establishes the formal lines of reporting and authorization protocols. The compensation committee reviews compensation plans for senior executives to determine if those plans create unintended pressures that might lead to distorted financial statements.