CengageNOWv2, 1 term Printed Access Card for Warren's Survey of Accounting, 8th
8th Edition
ISBN: 9781305961982
Author: Carl Warren
Publisher: Cengage Learning
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Question
Chapter 5, Problem 5.1E
To determine
Concept Introduction:
The management's internal control report is the one which provides information on the internal
The requirement of section
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Sarbanes-Oxley Internal Control Report
Using Wikipedia (www.wikipedia.com), look up the entry for Sarbanes-Oxley Act. Look over the table of contents and find the section that describes Section 404.
Section 404 requires management's internal control report to:
Internet Exercise: Reporting on Service Organization Controls. Search for a service organization auditor’s report on internal controls on the web. (Hint: You may have to look under the old name “SAS 70 reports.”) If you cannot find an auditor’s report, find a company’s news release describing its auditor’s service organization report.
Required:a. Why do you think it is so difficult to find an actual report?b. If you found an auditor’s report, were any deficiencies noted? If so, what were they?c. Why would a service organization publicize the results of its auditor’s report?
(Students should visit the SEC website, www.sec.gov, for supplemental resources.)
Why is the content of a proxy statement considered to be so important?
Chapter 5 Solutions
CengageNOWv2, 1 term Printed Access Card for Warren's Survey of Accounting, 8th
Ch. 5 - Prob. 1SEQCh. 5 - Prob. 2SEQCh. 5 - Prob. 3SEQCh. 5 - Adjustments to the company’s records based on the...Ch. 5 - Prob. 5SEQCh. 5 - Prob. 1CDQCh. 5 - Prob. 2CDQCh. 5 - Prob. 3CDQCh. 5 - Prob. 4CDQCh. 5 - Prob. 5CDQ
Ch. 5 - Prob. 6CDQCh. 5 - Prob. 7CDQCh. 5 - Prob. 8CDQCh. 5 - Prob. 9CDQCh. 5 - Assume that Leslie Hunter, accounts payable clerk...Ch. 5 - Prob. 11CDQCh. 5 - The accounting clerk pays all obligations by...Ch. 5 - Prob. 13CDQCh. 5 - Prob. 14CDQCh. 5 - Do items reported as a credit memorandum on the...Ch. 5 - Prob. 16CDQCh. 5 - Prob. 17CDQCh. 5 - Prob. 5.1ECh. 5 - Prob. 5.2ECh. 5 - Prob. 5.3ECh. 5 - Prob. 5.4ECh. 5 - Prob. 5.5ECh. 5 - Prob. 5.6ECh. 5 - Prob. 5.7ECh. 5 - Prob. 5.8ECh. 5 - Prob. 5.9ECh. 5 - Prob. 5.10ECh. 5 - Prob. 5.11ECh. 5 - Prob. 5.12ECh. 5 - Prob. 5.13ECh. 5 - Prob. 5.14ECh. 5 - Prob. 5.15ECh. 5 - Prob. 5.16ECh. 5 - Prob. 5.17ECh. 5 - Prob. 5.18ECh. 5 - Prob. 5.19ECh. 5 - Entries for note collected by bank Accompanying a...Ch. 5 - Prob. 5.21ECh. 5 - Prob. 5.22ECh. 5 - Prob. 5.23ECh. 5 - Prob. 5.24ECh. 5 - Prob. 5.25ECh. 5 - Prob. 5.1PCh. 5 - Prob. 5.2.1PCh. 5 - Prob. 5.2.2PCh. 5 - Prob. 5.3.1PCh. 5 - Prob. 5.3.2PCh. 5 - Prob. 5.4.1PCh. 5 - Prob. 5.4.2PCh. 5 - Prob. 5.4.3PCh. 5 - Prob. 5.4.4PCh. 5 - Prob. 5.1.1MBACh. 5 - Prob. 5.1.2MBACh. 5 - Prob. 5.1.3MBACh. 5 - Prob. 5.1.4MBACh. 5 - Ratio of cash to monthly cash expenses AcelRx...Ch. 5 - Prob. 5.2.1MBACh. 5 - Prob. 5.2.2MBACh. 5 - Ratio of cash to monthly cash expenses Pacira...Ch. 5 - Ratio of cash to monthly cash expenses Pacira...Ch. 5 - Prob. 5.2.5MBACh. 5 - Prob. 5.3.1MBACh. 5 - Prob. 5.3.2MBACh. 5 - Prob. 5.3.3MBACh. 5 - Prob. 5.3.4MBACh. 5 - Prob. 5.3.5MBACh. 5 - Prob. 5.4.1MBACh. 5 - Prob. 5.4.2MBACh. 5 - Prob. 5.1CCh. 5 - Prob. 5.2CCh. 5 - Prob. 5.3CCh. 5 - Prob. 5.4CCh. 5 - Prob. 5.5.1CCh. 5 - Prob. 5.5.2CCh. 5 - Prob. 5.5.3CCh. 5 - Prob. 5.6C
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- Discuss 2 similarities and differences of internal controls reporting requirements between public and private organizations. Give 2 examples of the challenges you have experienced in internal controls reporting in your previous organization. How have you been able to address them?arrow_forward(Students should visit the SEC website, www.sec.gov, for supplemental resources.) What is the purpose of the inspection process created by the Sarbanes–Oxley Act?arrow_forward3. Which of the following is not a computer facility control? (a) Place the data processing center where unauthorized individuals cannot gain entry to the facility. (b) Limit access to the data processing center all employees of the company. (c) Buy insurance to protect against loss of equipment in the computer facility. (d) Use advanced technology to identify individuals who are authorized access to the data processing center. 4.For internal control over computer program changes, a policy should be established requiring that: (a) All proposed changes be approved by a responsible individual and logged. (b) The programmer designing the change should be responsible for ensuring that the revised program is adequately tested. (c) All program changes be supervised by the information system control group. (d) To facilitate operational performance, superseded portions of programs should not be deleted from the program run manual.arrow_forward
- 3. Which of the following is not a computer facility control? (a) Place the data processing center where unauthorized individuals cannot gain entry to the facility. (b) Limit access to the data processing center all employees of the company. (c) Buy insurance to protect against loss of equipment in the computer facility. (d) Use advanced technology to identify individuals who are authorized access to the data processing center. 4.For internal control over computer program changes, a policy should be established requiring that: (a) All proposed changes be approved by a responsible individual and logged. (b) The programmer designing the change should be responsible for ensuring that the revised program is adequately tested. (c) All program changes be supervised by the information system control group. (d) To facilitate operational performance, superseded portions of programs should not be deleted from the program run manual. 5. Auditing "around the computer": (a) Assumes that accurate…arrow_forwardSection 404 requires management to make a statement identifying the control framework used to conduct their assessment of internal controls. Discuss the options in selecting a control framework.arrow_forwardThe following is a list of 12 control plans from Chapter 8. These are followed by a list of 10 B/AR/CR business process controls or deficiencies. Match the 10 B/AR/CR business process control plans with a pervasive control plan from Chapter 8 that could prevent the deficiencies noted in the preceding list or have an impact on the successful execution of the business process control. Explain the impact that the pervasive control could have. Control Plans from Chapter 8 Access control software (i.e., assignment of access rights to employees) Selection, hiring, and supervision of billing clerks to ensure that they can and do carry out their assigned responsibilities Physical controls for perimeter, building, and computer facilities to prevent loss or destruction of the computer resources Preventive maintenance of computer hardware to ensure reliability and availability Systems development life cycle (SDLC), including testing and approval before implementation of new or revised programs…arrow_forward
- The following is a list of 12 control plans from Chapter 8. These are followed by a list of 10 B/AR/CR business process controls or deficiencies. Match the 10 B/AR/CR business process control plans with a pervasive control plan from Chapter 8 that could prevent the deficiencies noted in the preceding list or have an impact on the successful execution of the business process control. Explain the impact that the pervasive control could have. Control Plans from Chapter 8 Access control software (i.e., assignment of access rights to employees) Selection, hiring, and supervision of billing clerks to ensure that they can and do carry out their assigned responsibilities Physical controls for perimeter, building, and computer facilities to prevent loss or destruction of the computer resources Preventive maintenance of computer hardware to ensure reliability and availability Systems development life cycle (SDLC), including testing and approval before implementation of new or revised programs…arrow_forwardExplain the role and responsibilities of the audit committee of Pastells with regard to: (i) the external audit of the company's financial statements.(ii) the internal control system and internal audit function. Should not be copied on googlearrow_forwardExplain the role and responsibilities of the audit committee of Pastells with regard to: (i) the external audit of the company's financial statements.(ii) the internal control system and internal audit function. Should not be copied on google or booksarrow_forward
- Which of the following is not included in the steps to evaluate the internal control system? a. Interview Customers b. Interview Management c. Interview Owners d. Interview Employeesarrow_forwardShould section 404 of Sarbanes–Oxley be extended to include cybersecurity?arrow_forwardexplain the use of cloud accounting to accounting department during lockdown due to covid-19?arrow_forward
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