Week 4 financial accouting

The framework for designing an internal control system is provided by the

Committee of Sponsoring Organizations (COSO) of the Treadway Commission.

Which of the following led to the passage of the Sarbanes-Oxley Act of 2002?

High profile accounting scandals during the early 2000s

Which of the following are preventive controls? Multiple select question. Physical controls Performance reviews Reconciliations Separation of duties

Physical controls Separation of duties

High profile accounting scandals in the early 2000s prompted the passage of the:

Sarbanes-Oxley Act

The asset that is most easily stolen and susceptible to fraud is

cash

The accounting term for a situation where two or more people act in coordination to circumvent internal controls is

collusion

A company's plans to safeguard company assets and enhance the reliability and accuracy of accounting information are referred to as

internal control

Separation of duties and E-commerce controls are examples of ______ controls.

preventative

Who is responsible for providing an opinion on management's assessment of internal control?

the companies auditors

Which of the following items are not included in cash? Multiple choice question. Accounts receivable from customers Cash in savings account Balance in checking accounts Currency and coins

Accounts receivable from customers

Which of the following are detective controls?

Audits Performance reviews Reconciliations

The Committee of Sponsoring Organizations (COSO) of the Treadway Commission provided a framework for

designing an internal control system.

The two types of control procedures are preventive and

detective

A periodic performance review is an example of a(n) ______ control.

detective or internal

The two most common sources of occupational fraud are: Multiple select question. financial statement manipulation misuse of company resources employee misrepresentation to outside stakeholders personal tax evasion

financial statement manipulation misuse of company resources

The use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employer's resources is called occupational ____

fraud

When a person intentionally deceives another person or company for personal gain, this is referred to as

fraud

Who has final responsibility for internal controls?

management

The most common source of occupational fraud is:

misuse of company resources

Internal control consists of plans to (Select all that apply.) Multiple select question. report management errors to the police. safeguard company assets. provide accurate and reliable accounting information. report misuse of company assets to investors.

safeguard company assets. provide accurate and reliable accounting information.