accounting homework review EXAM 2

Which of the following was not a change introduced by the Sarbanes-Oxley Act?

Limits on executive compensation for most companies.

Considering current laws that deal with misstatements of financial results, which of the following statements is correct?

Managers can be sentenced to maximum jail terms of up to 20 years for each violation.

Which of the following key requirements of the Sarbanes-Oxley Act (SOX) is correctly paired with the correct action?

Encourage honesty - ethics code.

Which of the following is an internal control for checks received through the mail?

The mail clerk gives checks and money orders to the person who makes the bank deposit.

Which of the following is one of the internal control functions performed by a cash register?

To document the amount charged for each item sold.

A petty cash fund is a separate checking account used to reimburse employees for expenditures they have made on behalf of the organization.

false

Which of the following is not one of the control components that are part of the framework used when analyzing an internal control system?

independent verifications

When cash is received from a remote source, the accounting department then compares the total on the cash receipts list with the stamped deposit slip received from the bank. Which internal control principle is being met with this procedure?

independent verify

Comparing the cash in the register with the cash count sheet is required by the internal control principle of:

independent verifying

The control environment:

is the attitude that people in the organization hold regarding internal control.

A company's cash receipts procedures include the following. -Cashiers collect cash and issue a receipt at the point of sale. -Supervisors take custody of the cash at the end of each cashier's shift and deposit it in the bank. -Accounting staff then ensure the receipts from cash sales are properly recorded in the accounting system. Which internal control principle is most evident with these procedures?

segregate duties

Cashiers at a supermarket must talk to a manager before approving price changes at the register. Which internal control principle is being followed?

segregate duties

The cashier uses the cash register and its accompanying point-of-sale accounting system to perform three important functions. Which of the following is one of those functions?

to restrict access

When duties are properly segregated, the accounting department should compare the cash in the register with the cash count sheet.

true