Chapter 4- Accounting 230 Smartbook

The Public Company Accounting Refom and Investor Protection Act of 2002 is known as the -Investor Protection Act. -Sarbanes-Oxley Act. -CPA Investigations Act. -SEC Reforms Act.

Sarbanes-Oxley Act.

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

fraud

Which of the following are provisions included in the Sarbanes-Oxley Act? A- Require that audit firms are hired by the audit committee of the board of directors. B- Require that the SEC audit publicly traded companies. C- Require auditors to retain work papers for 7 years. D- Require that the auditors are responsible for preparing the financial statements.

A & C

What requirements for corporate accountability are included in the Sarbanes-Oxley Act? (Select all that apply.) Corporate management must select the auditor Corporate executives may be criminally liable for fraudulent financial statements Corporate management must hire the same audit and consulting firm Corporate executives must personally certify the financial statements

Corporate executives may be criminally liable for fraudulent financial statements Corporate executives must personally certify the financial statements

Internal control consists of plans to (Select all that apply.) A- report management errors to the police. B- safeguard company assets. C- report misuse of company assets to investors. D- provide accurate and reliable accounting information.

safeguard company assets. provide accurate and reliable accounting information.