1. A strong system of internal A a) audits b) controls c) financial statements d) loan covenants e) None of the above. A reduces the B to commit fraud B rationalization opportunity opportunity incentive 12. If the cost of acquiring inventory is rising, LIFO will result in which of the following compared to FIFO? a) Cost of Goods Sold will be lower. b) Sales will be higher. c) Gross Profit will be lower. d) Income Tax Expense will be higher. e) None of the above. 13. A small company would have the most difficulty in implementing which of the following internal control principles? a) Documenting procedures b) Segregating duties c) Restricting access to cash or information d) Establishing responsibilities e) None of the above +