$7-24.$ Management is responsible for designing and maintaining its organization's internal control. In designing internal control, management must consider controls related to each of the five major internal control components: the control environment, risk assessment, the accounting information system, control activities, and monitoring.

a$.$ Management is considering controls for the following three control enviroument factors. For each, describe how the factor contributes to effective internal control.

$(1)$ Integrity anid ethical values.

$(2)$ Commitment to competence.

$(3)$ Board independence and effective oversight.

b$.$ Explain how risk assessment contributes to effective internal control, and identify four factors that result in increased financial reporting risk.

c$.$ Identify the five major objectives of an accounting information system.

d$.$ Describe the purpose of the following two types of control activities:

$(1)$ Performance reviews.

$(2)$ Transaction processing.

e$.$ Explain the two types of monitoring and provide an example of each.