5	What does the degree of operating leverage represent?
	(A) how much the sales of a company will change in response to a change in operating income
	(B) the valuation of assets to determine how much additional debt the company can borrow
	(C) how much the value of capital assets will change in response to a change in sales
	(D) how much the operating income of a company will change in response to a change in sales
6	What trait distinguishes auditors from accountants?
	(A) The auditor has extensive education beyond what ls required for an accountant.
	(B) The auditor can adapt to a rapidly changing profession.
	(C) The auditor can interpret accounting principles applicable to the country in which the client operates.
	(D) The auditor has expertise in the gathering and interpretation of audit evidence.
7	Proper segregation of functional responsibilities calls for separation of _______.
	(A) custody, execution, and payment
	(B) authorization, custody, and recording
	(C) custody, payment, and recording
	(D) authorization, custody, and execution
8	Which choice is not a com ponent of internal control?
	(A) risk mitigation
	(B) monitoring
	(C) information and communication
	(D) control environment

segregation of functional responsibilities calls for separation of _______. (A) custody, execution, and payment (B) authorization, custody, and recording (C) custody, payment, and recording (D) authorization, custody, and execution 8 Which choice is not a com ponent of internal control? (A) risk mitigation (B) monitoring (C) information and communication (D) control environment