Traditionally the primary source of operating risk in the area of external theft or malfeasance has been related to:

• A.the payment of false invoices or check fraud.
• B.the disposition of excess inventories.
• C.the receipt of unrecorded customer payments.
• D.the sale of idle or obsolete fixed assets.

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A company can dispute any check alterations within how many days after the bank statement has been sent?

• A.90 days
• B.30 days
• C.180 days
• D.60 days

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Which one of the following is NOT a method used by a company to repurchase stock?

• A.Negotiate directly with the board of directors.
• B.Repurchase in the open market.
• C.Make a tender offer to its stockholders.
• D.Negotiate directly with a major stockholder.

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A shareholder right found in many corporate charters is the preemptive right which provides:

• A.the right to choose directors through cumulative voting.
• B.the right to prevent the company from setting certain board agenda items.
• C.the right of shareholders to choose the corporation's auditor.
• D.the right to purchase shares of new stock and maintain pro-rata ownership interest.

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A disclaimer opinion is required on a set of financial statements when:

• A.the auditor is not independent.
• B.the financial statements are fairly stated.
• C.the financial statements may be misleading.
• D.material deviations from GAAP occur.

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