1.In considering the components of internal control, which is the most important for a successful internal control system?

	A.	Control Environment
	B.	Control Activities
	C.	Information and Communication
	D.	Monitoring

2.Which of the following would not be considered a control procedure?

	A.	Segregation of duties
	B.	Reconciliation of bank statements
	C.	Physical control over assets
	D.	Risk assessment

3.Which of the following would be considered adequate separation of duties?

	A.	The accounting controller brings deposits to the bank.
	B.	An accounting clerk records payments for accounts payable and records receipts for accounts receivable
	C.	The vice president of operations authorizes and writes checks for any amount over five thousand dollars.
	D.	The purchasing manager orders materials from vendors and records the materials as they are received.

4.Which of the fraud triangle forces is NOT necessary for fraud to occur anyhow?

	A.	Situational pressures
	B.	Opportunities to commit fraud
	C.	Rationalization
	D.	All three parts must be present for fraud to occur.

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Which of the quality costs is generally the most costly to a company?

	A.	prevention costs.
	B.	appraisal costs.
	C.	internal failure costs.
	D.	external failure costs.