Content, concept application, and writing quality will impact your grade. You are not required to follow any strict professional writing

format, but you must use complete sentences, proper punctuation, and cite the work of others if you use it in vour work.

Page $1.$ The length of your work is not important, but guidelines have been given to help you understand what your instructor

estimates would be necessary to satisfy the content requirements.

Part A $($approximately $\frac{1}{2}$ page$)-$ Internal Controls

Define and describe "Internal Controls." Tell why an effective internal control system is necessary and what it is expected to

accomplish. Give examples of specific internal control measures designed to protect $-$

a company's cash,

its inventory, and

the integrity of its financial reports.

Explain what a "control environment" is and how a company's managers can establish an effective control environment. Include

your thoughts about the importance of every employee's contribution to the control environment.

Part B $($approximately $\frac{1}{2}$ page$)-$ Ethics and Fraud

Define and describe "Ethics." Define "Fraud." Describe each of the elements of the fraud triangle and tell how it helps us to

understand human behavior. How does this understanding help us to design effective internal controls? Tell why you think high

ethical standards are important in the business environment.