Name: Cheryl Leslie Lunday Schedule: ACCTG 324 (3:00 – 4:30 PM
/TTh)
AUDIT OF LOGISTICS AND TRANSPORTATION INDUSTRY
(True or False Questions)
1. Transportation is defined as the movement of people, animals, and
goods from one location to another. These modes of transport may
include air, rail, road, sea, cable, pipeline and space.
- TRUE
2. Logistics does not include the process of planning, implementing, and
controlling procedures.
- FALSE
3. Logistics industry can be defined as the science of obtaining,
producing, and distributing material and products to the correct place
and in the correct quantities.
- TRUE
4. In this highly competitive market either information or physical
products must move with efficient speed and at lower cost, paired with
improved service.
- FALSE
5. Technologies have allowed real-time monitoring of flow and resources,
transparency across multiple points and the seamless exchange of
operational information with key performance indicators that have had
a profound impact on the industry.
- TRUE
6. The logistics industry is much narrower than the transportation
industry.
- FALSE
7. Successful supply chain management and logistics are often the
difference between surviving and flourishing in the current
marketplace.
- TRUE
8. While logistics focuses on the movement of goods from one place to
the other, the transportation industry implies a broader spectrum and
refers to the whole ‘flow’ management.
- FALSE
9. Transportation is a function within the logistics industry operations. It is
focused purely on the definition and deployment of transportation
modes.
- TRUE
10. The supply chain refers to the entire value chain from the
suppliers to the producers, including after sales services and reverse
logistics (recycling).
- FALSE
11. Logistics requires planning, whilst transportation is the mode to
execute the planning when freighting goods from point A to B.
- TRUE
12. Logistics and transportation are the same thing since
transportation is a part of logistics.
- FALSE
13. The three logistical processes are inbound logistics, outbound
logistics, and reverse logistics. The information about these three
supply chain directions is essential to know, especially to people
inclined in the logistics industry.
- TRUE
14. Outbound logistics refers to the movement of goods between
businesses and their suppliers
- FALSE
15. Reverse Logistics means the products’ movement from the end-
user/consumer back to the manufacturer or reverse supply chain.
- TRUE
16. Inbound logistics pertains to the flow of goods between
companies and the end-user/consumer.
- FALSE
17. Foreign freight forwarders are handlers of a myriad of foreign
freight services: rate quotes, vessel chartering, booking of vessel
space, handling of documentation and cargo insurance, tracing and
expediting, arranging inland transportation, and providing translation
services.
- TRUE
18. Ship agents are foreign representative of the ship operator that
handles the ship's arrival, berthing, clearance, loading and unloading.
- FALSE
19. The express delivery systems have created a door to door
linkage across domestic and international markets and have developed
advanced shipment tracking facilities to cater to the time sensitive
needs of the logistics sector.
- TRUE
20. Export trading companies are suppliers of expertise to those
wishing to sell products overseas but lacking the necessary resources.
- FALSE
21. Businesses in the transportation industry provide specialized
distribution services to clients, including inbound and outbound
logistics.
- TRUE
22. Export management companies are locaters of overseas buyers.
They also handle export documentation, transportation, and the
meeting of foreign government requirements.
- FALSE
23. Payroll audits in the transportation industry involve
systematically analyzing mileage records and hourly time sheets
against payment records, looking for discrepancies between earnings
and actual payments. If a payroll audit finds major discrepancies, it can
reveal potential errors or fraud in the accounting system.
- TRUE
24. Legal financial audits can ensure that safety policies, equipment
standards, accounting records and financial reporting remain in line
with state and federal mandates. Financial audits can ensure that all
vehicles maintain current emissions tests, for example, and that
accounting records comply with generally accepted accounting
principles
- FALSE
25. Safety is of paramount importance in the transportation industry,
for legal as well as practical reasons. It can be beneficial to audit a
transportation company’s safety policies and procedures, including
vehicle inspection procedures, disaster response plans and incident
report policies, to ensure that safety plans and procedures remain
relevant and effective over time.
- TRUE
