60.
Which element of the fraud triangle do companies have the greatest ability to eliminate?
61.
Fraudulent reporting by management could include:
62.
A company’s plans to minimize theft and enhance the accuracy of accounting information
are referred to as:
63.
What key piece of legislation was passed in response to corporate accounting scandals by
Enron, WorldCom, and others?
64.
The
Sarbanes-Oxley
Act
requires that companies must:
65.
Under the
Sarbanes-Oxley
Act
, management is responsible for:
66.
Which of the following does not represent a major provision of the
Sarbanes-Oxley
Act
?
67.
Under the provisions of the
Sarbanes-Oxley
Act
, corporate executives:
68.
Under the provisions of the
Sarbanes-Oxley
Act
, auditors must do which of the following?
69.
The
Sarbanes-Oxley
Act
(SOX)
mandates which of the following?
70.
Which of the following best describes the goal of internal controls?
71.
Which of the following is NOT a design feature of effective internal controls?
72.
A framework for designing an internal control system is provided by the:
73.
The component of internal control that includes the policies and procedures that help
ensure that management’s directives are being carried out is:
74.
The component of internal control that identifies internal and external factors that could
prevent a company’s objectives from being achieved is:
75.
The component of internal control that includes the formal procedures for reporting
control deficiencies is:
76.
The components of internal control do not directly include:
77.
Separation of duties refers to:
78.
What is the concept behind separation of duties in establishing internal controls?
79.
Which of the following is
not
an example of preventive controls?
80.
Which of the following is an example of detective controls?
81.
Keeping supplies in a locked room with access allowed only to authorized personnel is an
example of which preventive control?
82.
Giving only management the right to make purchases over a certain amount is an example
of which preventive control?
83.
Providing employees with appropriate guidance to ensure they have the knowledge
necessary to carry out their job duties is an example of which preventive control?
84.
Allowing only certain individuals to have passwords to conduct online purchases is an
example of which preventive control?
85.
Having management periodically determine whether the amount of physical assets of the
company match the accounting records is an example of which detective control?
86.
Checking actual outcome of individuals or processes against their expected outcome is an
example of which detective control?
87.
Having an independent party assess each year the adequacy of the company’s internal
control procedures is an example of which detective control?
88.
Which employees are the ones who must take final responsibility for the establishment
and success of internal controls?
89.
Which employees have an impact on the operation and effectiveness of internal controls?
90.
The act of collusion refers to:
91.
The asset most susceptible to theft is:
92.
Which of the following is considered cash for financial reporting purposes?
93.
Cash may not include:
94.
The balance of cash reported in the balance sheet would include which of the following?
95.
The term commonly used to refer to short-term investments that have a maturity date no
longer than three months from the date of purchase is:
96.
Cash equivalents refer to:
97.
Common examples of cash equivalents include all of the following except:
98.
Which of the following sales would typically be reported as a cash sale?
99.
Which of the following would NOT be recorded as a cash sale?
100.
Which of the following would NOT represent good controls over cash receipts?
101.
Which of the following would
not
be considered good internal control for cash receipts?
102.
When a sale is made to a customer who pays with a check, the company records:
103.
When a sale is made to a customer who pays with a debit card, the company records:
104.
The amount of revenue recorded at the time of a sale will be greatest when the customer
pays with a: