1 . Which of the following components of the control environment define the existing lines of responsibility and authority ? 2 . Which of the following is responsible for establishing a private company ' s internal control ? 3 . Reasonable assurance allows for : 4 . Narratives , flowcharts , and internal control questionnaires are three common methods of : 5 . Internal controls normally include procedures designed to provide reasonable assurance that : 6 . Proper segregation of functional responsibilities calls for separation of : 7 . When the auditor attempts to understand the operation of the accounting system by tracing a few transactions through the accounting system , the auditor is said to be : 8 . The PCAOB places responsibility for the reliability of internal controls over the financial reporting process on :