1. A file that stores sales orders pending shipment of ordered goods or completion of services is an example of a(n) ___________ file. A. master B. transaction C. open D. reference

2. Which of the following is not a reason that an external auditor would have an interest in an organization's internal control? A. The external auditor is required to evaluate internal control in planning an external audit, according to generally accepted auditing standards B. Internal control provides a measure of protection against erroneous or fraudulent financial reporting C. Strong internal control can eliminate the test of controls required to be performed by the external auditor D. The Sarbanes-Oxley Act of 2002 requires the external auditor attest to and report on managements assessment of internal control

3. Of the following control activities, which is the most effective? A. Bonding of employees B. Segregation of duties C. Enforced vacations D. Rotation of assignments