$10-6$ LO $2,4$ The following are items relating to inherent risk $($Category A$)$ or control risk $($Category B$)$ in the cash cycle. Categorize each item as relating to A or B$.$

$1.$ Does the company have significant cash flow problems in meeting its current obligations on a timely basis?

$2.$ Are there any restrictions in getting access to cash? For example, does the company have cash in sweep accounts, or other accounts with financial institutions that may be in trouble, and that may restrict access to cash?

$3.$ Does the internal audit department conduct timely reviews of the cash management and cash handling process? If yes, review recent internal audit reports.

$4.$ Does the company use cash budgeting techniques? How effective are the company$$s cash management budgeting techniques?