ACCT 105 Week 7 Quiz

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Quiz Submissions - ACCT 105 Week 7 Quiz

 

 

Attempt 1

A public company's disclosure internal control disclosure requirements in its annual report according to Sarbanes-Oxley Section 404 include which of the following:

Question options:

 

o   A written attestation by the company's board of directors confirming the adequacy and accuracy of its internal controls.

o   A written attestation by the company's management confirming the adequacy and accuracy of its internal controls.

o   A written attestation by the company's internal auditor confirming the adequacy and accuracy of its internal controls.

o   A written attestation by the company's external auditor confirming the adequacy and accuracy of its internal controls.

 

 

Question 2                

Significant deficiencies with internal controls do not have to be:

Question options:

 

o   Fixed, but should be disclosed.

o   Addressed, but should be changed.

o   Changed, but should be addressed.

o   Disclosed, but should be addressed.

 

 

Question 3                

Internal controls can be broken into two categories: 1) those relating to how transactions flow, and 2) those relating to employee integrity.

Question options:

 

o   True

o   False

 

Question 4                

Internal controls, as defined in Sarbanes-Oxley Section 404, are:

Question options:

 

o   The processes a company implements to prevent theft by employees.

o   The processes a company implements to prevent fraternization within departments.

o   The processes a company implements to ensure its financial statements comply with GAAP and are free from material misrepresentations and omissions.

o   The processes a company implements to ensure its purchasing department gets materials at the lowest price available and does not accept bribes or gifts from vendors.

 

Question 5                

Under Sarbanes-Oxley Section 404, all internal controls related to financial reporting must be assessed annually.

Question options:

 

o   True

o   False

Question 6                

Which of the following is not one of the four specific responsibilities that PCAOB Auditing Standard No. 2 levies on company management?

Question options:

 

o   Accept responsibility for the effectiveness of the company's internal control over financial reporting.

o   Evaluate the effectiveness of the company's internal control over financial reporting using suitable control criteria.

o   Support its evaluation with sufficient evidence, including documentation.

o   Present a written assessment of the effectiveness of the company's internal control over financial reporting as of the end of the company's five most recent fiscal years.

 

 

Question 7                

Section 404 of Sarbanes-Oxley levies duties on both management and outside auditors of public reporting companies.

Question options:

 

o   True

o   False

 

 

Question 8                

Which costs have not increased for public companies related to implementation of Sarbanes-Oxley?

Question options:

 

o   Accounting staff salaries

o   CEO salaries

o   Audit costs

 

 

Question 9                

SEC rules do not allow management to assert that a company has effective internal controls if:

Question options:

 

o   one or more material weaknesses exist.

o   two or more material weaknesses exist.

o   two or more immaterial weaknesses exist.

o   one material weakness and one immaterial weakness exist.

 

Question 10              

All accounting firms must register with the PCAOB.

Question options:

 

o   True

o   False