21.

Statement 1: Fraudulent statements are associated with management fraud

Statement 2: For the financial misrepresentation be considered a fraud, it must bring direct or indirect financial benefit to the perpetrator

A. Both statements are true

B. Both statements are incorrect

C. Only statement 1 is incorrect

D. Only statement 2 is incorrect

22. _______identifies the items of inventory that must be located and picked from the warehouse shelves

a. Warehouse personnel

b. Stock Release

c. Picking ticket

d. B and C

23. If someone wants to know the date of the actual shipment of the products, one may check the

a. Packing Slip

b. Shipping Log

c. Shipping Notice

d. Sales Order

24. Corporate inbreeding is not a good practice because

a. It promotes executives to be pressured to present overstatements on the financial statement

b. When Board of Directors are not independent from the company, they tend to favor decisions that will benefit their interest rather than the companys stakeholders.

c. When Board of Directors are not dependent from the company, they tend to favor decisions that will benefit their interest rather than the companys stakeholders.

d. None of the above

25. Which of the following is not a category of internal control activities?

a. Transaction authorization

b. Segregation of duties

c. Dual Verification

d. Accounting Records