Which of the following is an example of Control Activities?

Which of the following is an example of Control Activities?

• A. Separation of duties
• B. Annual performance evaluation
• C. Public reporting
• D. Policy development

Answer: (A)

Control Activities are the procedures and actions put in place to mitigate risk and ensure management’s directives are carried out. Separation of duties is a classic example because it distributes responsibilities so no single person controls all aspects of a transaction—authorization, custody, and recording—creating a built-in check that helps prevent and detect errors or fraud. Annual performance evaluation tends to fall under monitoring or performance management rather than a day-to-day control action. Public reporting relates to external disclosure and transparency rather than the internal steps that prevent misstatements. Policy development is about establishing rules and the governance framework, which supports the control environment, but it is not a specific control activity carried out in daily processes.

Control Activities are the procedures and actions put in place to mitigate risk and ensure management’s directives are carried out. Separation of duties is a classic example because it distributes responsibilities so no single person controls all aspects of a transaction—authorization, custody, and recording—creating a built-in check that helps prevent and detect errors or fraud.

Annual performance evaluation tends to fall under monitoring or performance management rather than a day-to-day control action. Public reporting relates to external disclosure and transparency rather than the internal steps that prevent misstatements. Policy development is about establishing rules and the governance framework, which supports the control environment, but it is not a specific control activity carried out in daily processes.