What does the term 'control activities' refer to in internal controls?

The term 'control activities' specifically refers to the actions taken to mitigate risks and achieve control objectives within an organization. These activities include various procedures and policies that are designed to ensure that management directives are carried out effectively. They can include measures such as approvals, authorizations, verifications, reconciliations, and segregation of duties.

Control activities are a critical component of an internal control system because they provide the mechanisms necessary to enforce the policies set by management, safeguard assets, prevent fraud, and ensure the accuracy and reliability of financial reporting. By focusing on specific tasks that address identified risks, control activities play a vital role in the overall governance framework.

In this context, the other options do not precisely capture the meaning of 'control activities.' General policies set by management are broader in scope and do not necessarily translate into specific tasks. Operational activities encompass all tasks within the organization, not exclusively those aimed at achieving control objectives. Finally, social responsibilities, while important, fall outside the realm of internal controls and focus more on ethical and community-related aspects of business conduct. Thus, the accurate definition aligns with specific tasks formulated to achieve control objectives effectively.