The following is a description of an internal control. DESCRIPTION: The compensation committee reviews compensation plans for senior executives to ensure that both monetary and equity-based pay totals are consistent with contracts approved by the board of directors. Required: Indicate which of the COSO internal control components is best represented by each internal control. a. Information and Communication b. Control Environment c. Monitoring d. Risk Assessment e. Control Activities

Option E. Control Activities

Explanation:

Control activities is a part of Control environment and in the given scenario, the company has a system of policies and procedures implemented to ensure whether the approved activities are carried out or not. This includes the segregation of duties, as the Compensation Committee is assigned the task to reviewing whether the payments that were made to the senior executives, both cash and equity based payments, are consistent with their contracts or not. Furthermore if it is not complied by the contract then relevant actions are carried out. So these are best represented by control activities.

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explanation:

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