An audit report has the following observations:

1. A service department's location is positioned to allow adequate service to other units.
2. Background checks are required for employees hired for sensitive positions.
3. Managers use overall department performance reports that are benchmarked to other organizations.
4. Management has taken corrective action to resolve past engagement observations related to inventory controls.

Which two of these are most likely to relate to the risk that assets may be misappropriated? Why are they the most likely to relate to misappropriation of assets risk?