S4-1 (Learning Objective 1: Define fraud) Define “fraud.” List and briefly discuss the three major components of the “fraud triangle.”

S4-2 (Learning Objective 2: Describe components of internal control) List the components of internal control. Briefly describe each component.

S4-3 (Learning Objective 2: Explain the objectives of internal control) Explain why separation of duties is often described as the cornerstone of internal control for safeguarding assets. Describe what can happen if the same person has custody of an asset and also accounts for the asset.

S4-4 (Learning Objective 2: Explain the components of internal control) Identify the other control procedures usually found in a company’s system of internal control besides separation of duties, and tell why each is important.