11-5.

Design of Internal Control: Management must evaluate whether the controls are
designed and put in place to prevent or detect material misstatements in the
financial statements.
Operating effectiveness of Controls: In addition, management must test the
operating effectiveness of controls.The testing objective is to determine whether
the controls are operating as designed and whether the person performing the
control possesses the necessary authority and qualifications to perform the control
effectively. Even if only one material weakness is present, management must
conclude that the company’s internal control over financial reporting is not
effective.