1.) When company management makes vendors and suppliers aware of company policies and procedures, what frequently occurs? (Points : 2)

Vendor and supplier purchases increase

Fraud risk is reduced

Procurement fraud increases

Vendor and supplier relationships deteriorate

2.) A retail home improvement chain had decreased profitability in the past 6 months due to bad debts. In order to increase sales, store managers have allowed customers to make large credit purchases without a credit review. Which type of internal control is missing from the chains internal control system? (Points : 2)

Separation of duties Documentation Authorization Independent checks