Shelly Eckert has prepared the following list of statements about internal control. Identify each statement as true or false. If false, indicate how to correct the statement. One of the objectives of internal control is to safeguard assets from employee theft, robbery, and unauthorized use. a. One of the objectives of internal control is to enhance the accuracy and reliability of the accounting records. b. C. No laws require U.S. corporations to maintain an adequate system of internal control. >

Shelly Eckert has prepared the following list of statements about internal control. Identify each statement as true or false. If false, indicate how to correct the statement. One of the objectives of internal control is to safeguard assets from employee theft, robbery, and unauthorized use. a. One of the objectives of internal control is to enhance the accuracy and reliability of the accounting records. b. C. No laws require U.S. corporations to maintain an adequate system of internal control. >

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 11MC: Which of the following is true about the Sarbanes-Oxley Act? A. It was passed to ensure that...

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Similar questions

Which of the following is true about the Sarbanes-Oxley Act? A. It was passed to ensure that internal controls are properly documented and tested by public companies. B. It applies to both public and smaller companies. C. It requires all companies to report their internal control policies to the US Securities and Exchange Commission. D. It does not require additional costs or resources to have adequate controls.
Internal control is said to be the backbone of all businesses. Which of the following is the best description of internal controls? A. Internal controls ensure that the financial statements published are correct. B. The only role of internal controls is to protect customer data. C. Internal controls and company policies are important to protect and safeguard assets and to protect all company data and are designed to protect the company from fraud. D. Internal controls are designed to keep employees from committing fraud against the company.
Which of the following would a fraudster perceive as a pressure? A. lack of management oversight B. everyone does it C. living beyond ones means D. lack of an internal audit function
After the passage of the Sarbanes-Oxley Act in 2002, many new responsibilities were put into place for organizations and their management. What are the four significant issues that were addressed by the act and its provisions as presented in this chapter? How does the act and its various requirements help deter fraudulent activity?
Indicate whether each of the following statements is true or false. Bribery in the world of business typically happens when an organization or representative of an organization gives financial benefits to an official to gain favor or manipulate a business decision. The Foreign Corrupt Practices Act was implemented in the aftermath of disclosures that businesses were violating the IMA Code of Ethics. Managers are required to follow specific rules issued by the iMA for internal financial reporting. Ethics is more than obeying laws. The Sarbanes-Oxley Act addressed public company accounting reform.
Which of the following is not considered to be part of the internal control structure of a company? A. Ensure that assets are kept secure. B. Monitor operations of the organization to ensure maximum efficiency. C. Publish accurate financial statements on a regular basis. D. Ensure assets are properly used.