What are the policies and procedures designed to ensure actions are executed in line with objectives called?

The correct answer emphasizes the importance of policies and procedures that guide organizational actions to align with established goals and objectives. Control activities are the specific actions that are executed to help maintain accountability, mitigate risks, and ensure that the organization is functioning effectively toward its objectives. These activities might include approvals, authorizations, verifications, reconciliations, and business performance reviews.

Effective control activities are crucial because they help to safeguard assets, enhance the reliability of financial reporting, and ensure compliance with applicable laws and regulations. They act as a framework within which organizations can operate systematically and consistently in pursuit of their strategic objectives.

In contrast, while information systems may involve the technology aspect that supports these control activities, they do not inherently ensure that actions are aligned with objectives. Risk management focuses on identifying and mitigating risks rather than setting the procedures for operational activities. Compliance regulations pertain to the laws and standards that organizations must adhere to, but they do not specifically define the internal policies and procedures for operational alignment.