During early times, the business world experience lack of auditor independence where audit firms are essentially auditing their own work. This practice is

a. Highly discourage because it can raise incompetencies

b. Highly encourage to perform faster and more efficient audit

c. Highly discourage because self-review imposes high risk of concealing detected problems

d. Highly discouraged because this may adversely affect their consulting fees and may result to disgruntled clients

18. Which among the following is not one of the principal reforms of the Sarbanes-Oxley Act

a. The Creation of an accounting oversight board

b. Penalties for fraud and other violations

c. Disclosure requirements

d. In-house auditor

19. _______ provides proof that the item ordered by a customer is already dispatched and shipped

a. Packing ticket

b. Shipping notice

c. Approved Sales order

d. Work order

20. Which of the following is a great example of segregation of duties

a. 3-way Match for Receiving Report, Purchase Order, and Accounts Payable Open File

b. The need for an approved sales order from the Credit Check Department

c. Accounting department to maintain records for the inventory while warehouse employee maintains custody of the inventory

d. Receiving Department to inspect and count received goods