Complete Question 3: complete the following statements: Statement 1). . is dishonest act by an employee that results in personal benefit to the employee at a cost to the employer. 2) Three factors that contribute to .......... activity are opportunity, financial pressure and rationalization 3) The Sarbanes-Oxley Act Required to maintain a system of ............. 4) The Sarbanes-Oxley Act Required Independent outside ........ must attest to the adequacy of the internal control system 5).........: Methods and measures adopted to: Safeguard assets. Enhance accuracy and reliability of accounting records. Increase efficiency of operations. Ensure compliance with laws and regulations. 6) The Five Primary Components of ............ are: 1. Control environment 2. Risk assessment 3. Control activities. 4. Information and communication. 5. Monitoring. 7) activities are: Establishment of Responsibility Segregation of Duties Documentation Procedures Physical Controls Independent Internal Verification Human Resource Controls 8) Generally, internal control over cash disbursements is more effective when companies pay by......., rather than by cash. 9) Cash Disbursements Controls include: a. Voucher system b. Petty cash fund 10)........ System includes: - Network of approvals, by authorized individuals, to ensure all disbursements by check are proper. - A voucher is an authorization form prepared for each expenditure 11).......... Fund - Used to pay small amounts: Involves establishing the fund, making payments from the fund, and replenishing the fund. 12) Cash ......... are short-term, highly liquid investments that are both: - Readily convertible to cash, and - So near their maturity that their market value is relatively insensitive to changes in interest rates 13)....... Cash should be reported separately on the balance sheet as restricted cash