100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Managerial Accounting Creating Value in a Dynamic Business Environment 10th edition By Hilton -Test Bank CA$32.05   Add to cart
Quickly navigate to
Preview
  2.  
  3. Accounting Test Bank
  4.  
  5. Accounting Test Bank
  6.  
  7. Accounting Test Bank

Exam (elaborations)

Managerial Accounting Creating Value in a Dynamic Business Environment 10th edition By Hilton -Test Bank
 25 views  0 purchase
  • Course
  • Accounting Test Bank
  • Institution
  • Accounting Test Bank

Chapter 03 Product Costing and Cost Accumulation in a Batch Production Environment True / False Questions 1. Manufacturing overhead is a pool of indirect production costs that must somehow be attached to each unit manufactured. True False 2. Electricity costs that were ...

[Show more]

Preview 4 out of 1802  pages

Document information

  • August 19, 2023
  • 1802
  • 2022/2023
  • Exam (elaborations)
  • Questions & answers

Subjects

  • managerial accounting creating value in a dynamic
  • complete test bank with answers

Written for

  • Accounting Test Bank
  • Accounting Test Bank
  • Accounting Test Bank
All documents for this subject (74)

Seller

avatar-seller
ExamsExpert

Reviews received

Content preview

,Appendix I - The Sarbanes-Oxley Act, Internal Controls, and Management Accounting


Appendix I
The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Multiple Choice Questions



1. The Sarbanes-Oxley Act:
A. arose because of several accounting scandals that rocked the public's confidence in
published financial statements.
B. was enacted, in part, to bring about reform in companies' financial reporting processes.
C. has distinct guidelines for reporting on an organization's internal control practices.
D. contains provisions whereby the chief executive officer (CEO) and chief financial officer
(CFO) can be held criminally responsible if their firm's financial statements are found to be
fraudulent in nature.
E. touches on all of these areas.



2. Internal controls focus on all of the following except:
A. effectiveness of operations.
B. reliability of financial reporting.
C. compliance with applicable laws and regulations.
D. maximization of profit and cash flows.
E. efficiency of operations.



3. Which of the following is a typical internal control?
A. The use of password-protected computers and software.
B. The requirement that separate individuals authorize cash disbursements and sign checks.
C. The use of physical controls over inventories to prevent loss from theft.
D. A physical count of inventory at year-end to verify amounts shown on the company's
accounting records.
E. All of these are typical internal controls.



4. The Sarbanes-Oxley Act established the:
A. Securities and Exchange Commission (SEC).
B. Public Company Accounting Oversight Board (PCAOB).
C. Financial Accounting Standards Board (FASB).
D. Institute of Management Accountants (IMA).
E. American Accounting Association (AAA).




Appendix I-1

,Appendix I - The Sarbanes-Oxley Act, Internal Controls, and Management Accounting



5. Which of the following bodies oversees audits and auditors, and sanctions firms and
individuals for violations of laws and regulations?
A. American Institute of Certified Public Accountants (AICPA).
B. American Accounting Association (AAA).
C. Public Company Accounting Oversight Board (PCAOB).
D. Financial Accounting Standards Board (FASB).
E. Accounting Principles Board (APB).



6. Which of the following is not a provision of (nor an outgrowth of) the Sarbanes-Oxley
Act?
A. A public company's annual report must contain a separate disclosure that assesses the
company's internal controls.
B. Management is essentially responsible for establishing and maintaining internal controls.
C. A company's Chief Executive Officer (CEO) and Chief Financial Officer (CFO) can be
held criminally responsible if their firm's financial statements are fraudulent.
D. A company must prepare a balance sheet, an income statement, a statement of
stockholders' equity, and a statement of cash flows.
E. A new body, the Public Company Accounting Oversight Board, oversees and investigates
the audits and auditors of public companies.



7. Which of the following statements regarding the Sarbanes-Oxley Act is (are) true?
A. Management must establish and maintain a system of internal controls over financial
reporting.
B. Management must periodically assess a company's system of internal controls over
financial reporting.
C. Management must include in the company's annual report a separate report that assesses
internal controls.
D. A company's auditors are required to report on management's assessment of internal
controls.
E. All of these statements are true.




Appendix I-2

, Appendix I - The Sarbanes-Oxley Act, Internal Controls, and Management Accounting



8. The provisions of sections 302 and 404 of the Sarbanes-Oxley Act (as originally enacted)
have proved especially troublesome for:
A. Small businesses.
B. Private universities.
C. Cities and municipalities.
D. Healthcare providers.
E. Individual taxpayers.



9. The provisions of section 302 of the Sarbanes-Oxley Act (as originally enacted) require the
signing officers of a company to do all of the following except:
A. Audit the internal controls over financial reporting.
B. Establish the internal controls over financial reporting.
C. Maintain the internal controls over financial reporting.
D. Evaluate the internal controls over financial reporting.
E. Disclose material weaknesses in the internal controls over financial reporting.



10. Section 404 of the Sarbanes-Oxley Act, Management Assessment of Internal Controls,
includes all of the following except:
A. A statement of management's responsibility for establishing the internal control structure.
B. A waiver of auditor responsibility for assessing management's report on internal controls.
C. An assessment of the effectiveness of internal controls by management.
D. An assessment of the effectiveness of procedures for financial reporting by management.
E. A requirement that management include in its annual report an internal control report.



11. To achieve the objectives of sections 302 and 404 of the Sarbanes-Oxley Act,
management and independent auditors should:
A. Disclose the minutia of the internal control structure.
B. Conduct a cost-benefit analysis prior to deciding whether or not to adopt these sections.
C. Emphasize those areas where the greatest risk of fraud or material misstatement is likely to
occur.
D. Analyze all financial transactions that are included in the reported financial statements.
E. Work together to design the most effective internal control system.




Appendix I-3

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsExpert. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$32.05. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

77254 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling

Recently viewed by you

Exam (elaborations) ·

(0)

adpp final exam study guide with complete solutions

CA$32.05
  • (0)
  Add to cart