Question 1

Which of the following does Sarbanes-Oxley NOT require management to do?

Accepted Answer

A)  Develop and enforce an officer code of ethics 
B)  Make loans to executive officers and directors 
C)  Prepare a statement to accompany the audit report 
D)  Support a much stronger board and audit committee in each public company 
A)  Develop and enforce an officer code of ethics 
B)  Make loans to executive officers and directors 
C)  Prepare a statement to accompany the audit report 
D)  Support a much stronger board and audit committee in each public company

Question 2

According to Sarbanes-Oxley, which one of the following services is an accounting firm permitted to provide to its audit client?

Accepted Answer

A)  Bookkeeping or other services related to the accounting records or financial statements 
B)  Internal audit outsourcing services 
C)  Legal services and expert services unrelated to the audit 
D)  Opinions about the reliability of internal controls 
A)  Bookkeeping or other services related to the accounting records or financial statements 
B)  Internal audit outsourcing services 
C)  Legal services and expert services unrelated to the audit 
D)  Opinions about the reliability of internal controls

Question 3

Restoring public confidence in the financial reporting process requires that management ensure financial statement users of the steps taken to provide quality financial information. How does the Sarbanes-Oxley Act constrain management to achieve that public confidence?

Accepted Answer

The answer of Restoring public confidence in the financial reporting...

Question 4

The Public Company Accounting Oversight Board is NOT required to

Accepted Answer

A)  Establish standards relating to the preparation of audit reports for public companies 
B)  Conduct inspections of accounting firms 
C)  Register all public accounting firms that provide audits for public companies 
D)  Enforce compliance with the Foreign Corrupt Practices Act 
A)  Establish standards relating to the preparation of audit reports for public companies 
B)  Conduct inspections of accounting firms 
C)  Register all public accounting firms that provide audits for public companies 
D)  Enforce compliance with the Foreign Corrupt Practices Act

Question 5

Control activities can be defined as

Accepted Answer

A)  The lines of authority and responsibility within a company. 
B)  The actions, policies, and procedures that reflect the overall attitudes of top management about control. 
C)  The members of a company's board of directors who are responsible for dealing with the external and internal auditors. 
D)  The policies and procedures used by management to meet their objectives. 
A)  The lines of authority and responsibility within a company. 
B)  The actions, policies, and procedures that reflect the overall attitudes of top management about control. 
C)  The members of a company's board of directors who are responsible for dealing with the external and internal auditors. 
D)  The policies and procedures used by management to meet their objectives.

Question 6

List and describe the four major reasons for managing reported earnings.

Accepted Answer

The answer of List and describe the four major reasons...

Question 7

If rent for 2012 is paid in advance during 2011 but is mistakenly debited to Rent Expense in 2011,

Accepted Answer

A)  Net income for 2011 will be overstated 
B)  There will be no error in 2011 net income 
C)  Net income for 2011 will be understated 
D)  The answer cannot be determined from the information given 
A)  Net income for 2011 will be overstated 
B)  There will be no error in 2011 net income 
C)  Net income for 2011 will be understated 
D)  The answer cannot be determined from the information given

Question 8

Recording the collection of accounts receivable by debiting Cash and crediting Revenue

Accepted Answer

A)  Overstates cash 
B)  Understates owner's equity 
C)  Overstates assets 
D)  Overstates both cash and assets 
A)  Overstates cash 
B)  Understates owner's equity 
C)  Overstates assets 
D)  Overstates both cash and assets

Which of the following does Sarbanes-Oxley NOT require management to do?

According to Sarbanes-Oxley, which one of the following services is an accounting firm permitted to provide to its audit client?

Restoring public confidence in the financial reporting process requires that management ensure financial statement users of the steps taken to provide quality financial information. How does the Sarbanes-Oxley Act constrain management to achieve that public confidence?

The Public Company Accounting Oversight Board is NOT required to

Control activities can be defined as

List and describe the four major reasons for managing reported earnings.

If rent for 2012 is paid in advance during 2011 but is mistakenly debited to Rent Expense in 2011,

Recording the collection of accounts receivable by debiting Cash and crediting Revenue

Accounting Information: Users and Uses

Financial Statements: An Overview

The Accounting Cycle: The Mechanics of Accounting

Completing the Accounting Cycle

Receivables: Selling a Product or a Service

Inventory and the Cost of Sales

Completing the Operating Cycle

Investments: Property, Plant, and Equipment and Intangible Assets

Financing: Long-Term Liabilities

Financing: Equity

Investments: Debt and Equity Securities

Statement of Cash Flows

Analyzing Financial Statements

Management Accounting and Cost Concepts

Cost Flows and Business Organizations

Activity-Based Costing

Budgeting and Control

Controlling Cost and Profit

Inventory Management and Variable and Absorption Costing

Cost Behavior and Decisions Using C-V-P Analysis

Relevant Information and Decisions

Capital Investment Decisions

New Measures of Performance

Filters

Exam 5: Internal Controls: Ensuring the Integrity of Financial Information

Which of the following does Sarbanes-Oxley NOT require management to do?

According to Sarbanes-Oxley, which one of the following services is an accounting firm permitted to provide to its audit client?

Restoring public confidence in the financial reporting process requires that management ensure financial statement users of the steps taken to provide quality financial information. How does the Sarbanes-Oxley Act constrain management to achieve that public confidence?

The Public Company Accounting Oversight Board is NOT required to

Control activities can be defined as

List and describe the four major reasons for managing reported earnings.

If rent for 2012 is paid in advance during 2011 but is mistakenly debited to Rent Expense in 2011,

Recording the collection of accounts receivable by debiting Cash and crediting Revenue

Accounting Information: Users and Uses

Financial Statements: An Overview

The Accounting Cycle: The Mechanics of Accounting

Completing the Accounting Cycle

Receivables: Selling a Product or a Service

Inventory and the Cost of Sales

Completing the Operating Cycle

Investments: Property, Plant, and Equipment and Intangible Assets

Financing: Long-Term Liabilities

Financing: Equity

Investments: Debt and Equity Securities

Statement of Cash Flows

Analyzing Financial Statements

Management Accounting and Cost Concepts

Cost Flows and Business Organizations

Activity-Based Costing

Budgeting and Control

Controlling Cost and Profit

Inventory Management and Variable and Absorption Costing

Cost Behavior and Decisions Using C-V-P Analysis

Relevant Information and Decisions

Capital Investment Decisions

New Measures of Performance

Filters