1. The company's environment has two aspects. One is the external environment. Which of the following is not an external environment factor?

Economic

Technical

Social

Tone at the Top

2. Match the description of the controls with the financial area the control would pertain to. (some matching items may be used more than once)

Question Items

A - All check stock must be locked up when not in use.

B - Review all employee advances with the payroll and payables staff at least once per month.

C - Require approval of bad debt write-offs.

D - Audit shipment terms.

E - Require approval of bad-debt write-off.

F- Review Uncashed Checks.

G- Audit the receiving dock.

H - Compare capital investment projections to actual results.

I - Require supervisory approval of all borrowings and repayments.

J - Require approval of credits.

K- Perform a physical inventory of plant equipment every three months.

Matching Items

Answer Items

A. Cash

B. Accounts Receivable

C. Prepaid Expenses

D. Fixed Assets

E. Debt

F. Inventory