5. Which of the following control procedures is designed to reduce the risk of check altera-tion fraud? a. ACH blocks on accounts not used for payments b. Use of dedicated computer and browser for online banking c. Establishing Positive Pay arrangements with banks d. Access controls for EFT terminals e. Prenumbering all checks

6. Which of the following control procedures is designed to reduce the risk of theft of inventory? a. Restriction of physical access to inventory b. Periodic physical counts of inventory and reconciliation to recorded quantities on hand c. Documentation of all transfers of inventory between employees d. All of the above e. None of the above

7. Which of the following control procedures is designed to reduce the risk of ordering un-needed inventory? a. Tracking and monitoring product quality by supplier b. Purchasing only from approved suppliers c. Holding purchasing managers responsible for rework and scrap costs d. All of the above e. None of the above

8. Which of the following documents is no longer needed if a company uses the evaluated receipts system (ERS) with its suppliers? a. Purchase order b. Receiving report c. Supplier invoice d. Debit memo e. None of the above

9. Kickbacks are a problem because they increase the risk of a. purchasing inventory that is not needed b. purchasing inferior quality items c. purchasing at inflated prices d. all of the above e. none of the above

10. Which threat is most likely to result in the largest losses in a short period of time? a. Alteration of checks or EFT payments b. Theft of inventory c. Duplicate payments to suppliers d. All of the above e. None of the above