1. Which of the following would be a likely target of an internal audit?
A corporation's charitable-giving program
A corporation's current competitor
A corporation's possible acquisition
A corporation's potential merger partner
A corporation's potential supplier
2. Scott is in charge of production at Fasteners Unlimited Inc. His job responsibilities include eliminating defects in the equipment parts the factory produces. However, he has advised his crew to alert him only when defects exceed 200 per million, which he considers a serious deviation from standards. In this case, Scott is using
the principle of deviation.
the principle of exception.
behavioral standards.
a management audit.
clan control.