Internal Controls are required to safeguard assets and to ensure ethical business practices. (1) Identify and explain the reason for any two of the five components of internal control (10 points) and (2) provide examples of how your two selected components of internal control will meet the goal of safeguarding assets and promoting ethical business practices.

2.  (TCO 5) The bank account as a control device helps to protect cash. One of the requirements is to conduct periodic bank statement reconciliations. Using the following data, complete the bank statement reconciliation.

   Use the information below to prepare the bank reconciliation for Collier Cleaners for the month of September.

   ·The bank statement indicated bank service charges of $63.

   ·Outstanding checks as of September 30 amounted to $1,405.

   ·Deposits in transit as of September 30 amounted to $2,769.

   ·The ending balance per the September bank statement is $40,753.

   ·Collier Cleaners bookkeeper mistakenly recorded a $1,610 cash disbursement as $1,160 for Office Supplies on check #2402.

   ·The bank mistakenly recorded a deposit of $2,800 as $280 on February 17.

   ·The bank made an EFT payment on behalf of the company for Insurance for $3,200.

   ·Bank collected rent of $3,000 and a note, for $16,450, including interest of $450.

   ·The ending cash balance per the books for September before any adjustments was 28,900. (Points : 25)