true or false. Flowcharting is a requirement of Sarbanes-Oxley (SOX). In other words, if a publicly-traded company does not have flowcharts of their business process cycles, they can't say that they comply with SOX.
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true or false. Flowcharting is a requirement of Sarbanes-Oxley (SOX). In other words, if a publicly-traded company does not have flowcharts of their business process cycles, they can't say that they comply with SOX.
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- What is meant by GAAP? Why should all companies follow GAAP in reporting to external users?Some argue that having various organizations establish accounting principles is wasteful and inefficient. Rather than mandating accounting rules, each company could voluntarily disclose the type of information it considered important. In addition, if an investor wants additional information, the investor could contact the company and pay to receive the additional information desired.What is meant by GAAG? Why should all companies follow GAAP in reporting to external users?
- Under IFRS, a voluntary change in accounting method may only be made by a company if * a. A new standard mandates the change in method. b. Management prefers the new method. c. The new method provides reliable and more relevant information. d. There is no prohibition of the method in the standards.Some argue that having various organizations establish accounting principles is wasteful and inefficient. Rather than mandating accounting rules, each company could voluntarily disclose the type of information it considered important. In addition, if an investor wants additional information, the investor could contact the company and pay to receive the additional information desired. Instructions Comment on the appropriateness of this viewpoint.People with an indirect interest in a business would use report based on GAAP. TRUE or FALSE?
- Which of the following is NOT true of a turn- around document? a. They may reduce the number of errors made by external parties. b. They are commonly used by utility companies (gas, power, water). c. They are documents used by internal parties only. d. They are both input and output documents.Give and explain two unethical ways in which a business may prepare its financial statementsIf a transaction cannot be recorded in a special journal, it indicates that the company should adopt an electronic accounting system. True False
- The REA model is based on the premise that ‘‘business data must not be preformatted or artifi- cially constrained and must reflect all relevant aspects of the underlying economic events.’’ What does this mean and how is it applied?One reason that an cntity is allowed to change its accounting policy is when It is required by an accounting standard. It is required by law. It is ordered by management. All of these would allow an entity to change an accounting policy.Which of the following is false about accounting information systems? A. They provide reports that people analyze. B. They prevent errors and stop employees from stealing inventory. C. They are designed to gather data about the companys transactions. D. They consist of processes that involve input of data from source documents, processing, output, and storage.