1) A local bank reported that it lost $150,000 as the result of an employee fraud. Randal Smith is not clear on what is meant by an employee fraud. Explain the meaning of fraud to Randal and give an example of frauds that might occur at a bank.

2) Identify and describe the five components of a good internal control system.

3)How do documentation procedures contribute to good internal control?

4) What internal control objectives are met by physical controls?