6-3 Ch 6 Problem Set B Match the example or definition with the internal control component. Letter Example or Definitions External threats to the organization's success Reporting on actual and potential problems in the system. Information should move both up and down the chain of command. New employees are given a personnel policies manual upon hiring. "Tone at the top" Internal threats to the organization's success Internal auditor group 1/C Component a. Control Environment b. Strategic Risks c. Business Process Risks d. Information/Communication e. Monitoring New competition Sarbanes-Oxley Act Logistics and distribution Problem 6-4 Match the example or definition with the internal control activity or procedure. Letter Example or Definition Safes, vaults, and locked warehouses. The auditor compares bank deposit with cash register tape. Every cashier has their own cash drawer. Checks are prenumbered. Separates record keeping from physical control of the asset. Only the company comptroller signs checks Discrepancies are reported to management. Passwords, badges, retinal scans, cameras One person collects cash, another person gives customer their order. An un-numbered shipping document is destroyed but nobody knows it. 1/C Activity or Procedure a. Authority/Responsibility b. Segregation of duties c. Documents/Records d. Safeguards of Assets e. Independent Verification