1. When an organization engages in benchmarking, it normally compares its performance to:
A. the average performance of other organizations.
B. its projected (or budgeted) performance.
C. its performance in a prior period.
D. the performance of a "best in class" organization.
2. For an investor, which best describes the likelihood of currency devaluation in a developing market economy?
A. organizational risk
B. external risk
C. control risk
D. operational risk
3. Which must be part of any risk model involving inventory valuation?
A. product warranty policies
B. vendor pricing policies
C. inventory shrinkage expense
D. annual sales forecasts
4. Vertical integration to reduce supplier risk is an example of which risk technique?
A. sharing supplier risk.
B. avoiding supplier risk.
C. diversifying supplier risk.
D. hedging supplier risk
5. Which component is the foundation of the COSO framework?
A. monitoring
B. control activities
C. control environment
D. information and communication
6. What is the purpose of a control chart?
A. to provide a visual summary of the organization's system of controls.
B. to keep track of the major control concerns facing the organization.
C. to signal when a process is outside the limits of acceptable variation.
D. to assign responsibility for various processes to specific employees
7. Which would improve the control of cash?
A. The cashier reconciles bank accounts monthly.
B. Checks are restrictively endorsed at the time of receipt.
C. The person who authorizes checks also signs the checks.
D. The cashier records cash receipts in customers' accounts.Answer