Question: 1
A company would like to contract for janitorial services for one year with four option years. The specifications require the potential contractor to perform certain cleaning services at specified intervals. Which of the following is the best contract type for this requirement?
Question: 2
Which of the following does the internal auditor not have to review as thoroughly in a lump-sum contract?
Question: 3
No incentive for efficiency or economy may exist in a cost-plus construction contract for small, unique projects. The potential exists for inflated costs. An appropriate control to encourage efficiency and economy in these contracts is
Question: 4
Which of the following would be a red flag that indicates the possibility of inventory fraud?
I . The controller has assumed responsibility for approving all payments to certain vendors.
II . The controller has continuously delayed installation of a new accounts payable system, despite a corporate directive to implement it.
III . Sales commissions are not consistent with the organization's increased levels of sales.
IV . Payments to certain vendors are supported by copies of receiving memos, rather than originals.
Question: 5
A manufacturing process could create hazardous waste at several production stages, from raw materials handling to finished goods storage. If the objective of a pollution prevention audit engagement is to identify opportunities for minimizing waste, in what order should the following opportunities be considered?
I . Recycling and reuse.
II . Elimination at the source.
III . Energy conservation.
IV . Recovery as a usable product Treatment.
A V, II, IV, I, III.
B IV, II, I, III, V.
C I, III, IV, II, V.
D III, IV, II, V, I.
Answer : B
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