Exam 6: The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Which element of internal control deals with establishing procedures for things such as handling of incoming checks?

The audit opinion issued when the auditors are unable to express an opinion is the:

The delegation of authority and responsibility is part of the control environment of an internal control system.

Persons who report unethical behavior are known as:

Embezzlement usually involves the misappropriation of business:

Ensuring compliance with laws and regulations is an example of what following GAAP can do for a company.

Using U.S. GAAP, book value typically ________ market value.

US GAAP uses the cost principle and is less conservative than international standards.

A good internal control system does which of the following?

A qualified opinion is the best type of audit opinion.

Internal control systems:

Joe was overlooked for a promotion and decides to embezzle money because he feels like he deserved that raise. This is an example of, respectively:

The Sarbanes-Oxley Act requires a company's stockholders to be more responsible.

Behaving ethically and behaving legally are the same.

An organization's employees are usually responsible for fraud that is committed by a business organization.

Receiving something from a supplier in exchange for authorizing payments for goods not delivered to the employer would be an example of a:

Which of the following items is NOT a limit to the effectiveness of internal control systems in an organization?

The agency that requires financial audits of publicly traded companies is the:

The ongoing process that identifies and analyzes potential problems in an organization and takes steps to reduce those problems is risk assessment.

The International Accounting Standards Board was formed in: