1. Internal control The five key elements of internal control are (1) the control environment, (2) risk assessment, (3) control procedures, (4) monitoring, and (5) information and communication. Various aspects of internal controls for several companies are described in the following table. For each description, indicate whether the conditions suggest effective or ineffective internal controls. Effective Ineffective Internal Controls Internal Controls Werner Inc.'s accounts payable department issues checks to suppliers. The company checkbook consists of blank checks that the accountant must enter a check number for, fill out, and issue once they are properly authorized and approved. Barker Corp. has five distinct operating divisions and assigns one member of the accounting staff to oversee the entire sequence of related operations needed for a business unit. Yorke Inc. has a main showroom to display retail products to the public. However, the showroom contains only a small fraction of the total inventory that Yorke Inc. has on the premises, with the rest being kept in a series of locked containers in the storeroom Townsend Co.'s management strongly emphasizes current period earnings and occasionally allows key employees to circumvent company procedures if higher earnings can be achieved. Lake Corp. has two members of its accounting staff handle accounts receivable and cash collection for all of its foreign and domestic operations. One employee manages accounts receivable, while the other manages cash collection. Cotter Co. has six employees on its accounting staff, but the employees' responsibilities over different parts of the company's operations rotate periodicall