1. Which of the following is true about internal vs. external auditing? Please explain. No explanation, means thumbs down.

a) Internal auditing reports to the external auditors.

b) Internal auditing is more focused on financial reporting than external auditing.

c) Many of the tool and techniques in auditing are common to both internal and external auditing.

d) External auditors cannot rely on any of the work done by internal auditing.

e) Both have the same definition of the term 'independence'.

2. State whether the following statement is true or false. If the statement is false, identify the words that make it false. The first step in implementing ABC is a detailed study of all business processes and costs.

3. State whether the following statement is true or false. If the statement is false, identify the words that make it false. ABC maintains the traditional division between product and period costs.