Below are several statements about internal controls. Required: Select whether the answer to each of the statements is true or false Statements 1. The components of internal control are built on the foundation of the ethical tone set by top management 2. Once every three months, managers need to review operations to ensure that control procedures work effectively 3. Collusion refers to the act of a single individual circunventing internal control procedures True False 4 Detective control procedures are designed to detect errors or fraud that have already ocurred; while preventive control procedures are designed to keep errors or fraud from occurring in the first place 5 Fraud committed by top-level employees is more difficult to detect because those empoyees more often have the ability to override internal control features A good example of separation of dutes would be having one person collect cash from customers and account for it while having another person order inventory and maintain control over it 7. Employee tips histoncally have been the most common means of detecting empoyee fraud 00 Detective controls include reconciling the physical assets of the company with the accounting records and compating actual performance of individuals or processes aga nt their e gected performance Efective internal controls and ethical employees ensure a company's success