1. Assume the risk/control matrix is organized like the one presented in the chapter. The best entry for Item G is:

Error rates less than 5% are allowable

Finance process

Either financing process or error rates less than 5% are allowable

Neither financing process nor error rates less than 5% are allowable

2. Assume the risk/control matrix is organized like the one presented in the chapter. The best entry for Item D is:

Human Error Risk

Liquidity Risk

Systems Risk

Business Strategy Risk

Consider the following partially completed risk/control matrix as you answer the questions Internal control purpose Preventive Risk category Separation of duties Internal audit of Comments Acquisition / payment process Liquidity risk Dividends paid to the wrong shareholders Sharp increases in bad debts Interest rate increases on adjustable rate debt database Credit risk Preventive Sales / collection process Market risk Establish and enforce a company policy to only take on fixed rate debt