1. Many smaller businesses, not-for-profit organizations, and smaller governments _______.

Group of answer choices

a.may have inadequate segregation of duties,which results in weak internal controls over cash

b.may have adequate segregation of duties,which results in weak internal controls over cash

c.may have inadequate segregation of duties,which results in strong internal controls over cash

d. utilize their own internal audit function to attest to the accuracy and fairness of their financial statements

2. A client maintains perpetual inventory records in both quantities and dollars. If the assessed level of control risk is low, an auditor would probably:

Group of answer choices

a. increase the extent of tests of controls over inventory.

b. observe the client's inventory count at an interim date.

c. request the client to schedule the physical inventory count at the end of the year.

d. insist that the client perform physical counts of inventory items several times during the year.

3. An audit of inventory _______.

a. will vary from client to client

b. is prescribed by GAAP standards, which must be adhered to closely

c. is a systematic approach, and rarely varies between clients

d. is typically left to the internal auditors