ac210 hw questions

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

Limits on executive compensation for most companies.

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

Assume a voucher system is in use. When the bill for goods or services is obtained, which control principle(s) must be met when the related control procedures are designed?

Document procedures and independently verify

Which principle of internal control states that you should assign each task to only one employee?

Establishing responsibility

What is the primary goal of internal controls for cash payments?

To ensure that payments are made only for properly authorized transactions.

The preparation of a list of goods received is an example of:

document procedures

Collusion occurs when:

employees work together to get around internal controls

which of the following statements concerning electronic funds transfers is not correct?

because electronic funds transfers are deposited directly into the company's bank account, they require additional internal control procedures.

All of the following are requirements of the Sarbanes-Oxley Act (SOX) except:

evaluation and reporting on the effectiveness of internal control over financial reporting for all public companies by management with disclosure that management is not responsible for the internal control system.

The incentive element of the fraud triangle relates to an employee's means of committing fraud such as weaknesses in internal control.

false

The fraud triangle contains three elements that must exist for accounting fraud to occur. The elements are:

incentive, opportunity, and rationalization.

The Sarbanes-Oxley Act (SOX) requires the establishment of an audit committee that includes the:

independent directors

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

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

independently verifying

Assigning responsibilities so that related activities are assigned to two or more people is the goal of:

segregating duties

The Sarbanes-Oxley Act (SOX) requires external auditors to test the company's internal control system.

true