Exam 6: The Challenges of Accounting: Standards, internal Control, audits, fraud, and Ethics

Two or more people must work together to commit fraud.

Certified Public Accountants perform external audits of a company to confirm that the financial statements are fairly presented according to GAAP.

U.S.GAAP has been organized into what is called the Accounting Standards Codification.

The Sarbanes-Oxley act applies to:

The factor that might make a person steal money because "The company has more than its fair share," would be:

The Sarbanes-Oxley Act only applies to publicly traded companies.

An audit opinion in which the auditors are taking exception to a specific treatment of accounting information is the:

An audit trail:

Recording assets that the company does NOT possess is an example of:

One of the biggest factors in implementing SOX was:

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:

Currently,most European countries are using International Financial Reporting Standards.

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

________ can be reduced through a good system of internal control.

If an employee gives a false refund and pockets the cash,this would be considered a(n):

Certified public accountants are licensed by the:

Contingent liabilities are ________ under GAAP,and ________ under IFRS I.Recorded if probable II.Recorded if possible III.Recorded if reasonably estimated IV.All of the above

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

Finding good reasons for doing things that we REALLY know are wrong is an example of:

A requirement that employees go on vacation is an example of: