Chapter 8 Practice MaterialsChapter 8 Practice Materials.docVIP

Chapter 8 —Sarbanes Oxley, Internal Control, Cash MULTIPLE CHOICE 1. Which one of the following below is not an element of internal control? a. risk assessment b. monitoring c. information and communication d. behavior analysis ANS: D DIF: Easy OBJ: 08-02 NAT: AACSB Analytic | AICPA BB-Industry 2. Which one of the following below is not a factor that influences a businesss control environment? a. managements philosophy and operating style b. organizational structure c. proofs and security measurers d. personnel policies ANS: C DIF: Easy OBJ: 08-02 NAT: AACSB Analytic | AICPA BB-Industry 3. When a firm uses internal auditors, it is adhering to which one of the following internal control elements? a. risk assessment b. Monitoring c. proofs and security measures d. separating responsibilities for related operations ANS: B DIF: Easy OBJ: 08-02 NAT: AACSB Analytic | AICPA BB-Industry 4. The objectives of internal control are to a. control the internal organization of the accounting department personnel and equipment b. provide reasonable assurance that operations are managed to achieve goals, financial reports are accurate, and laws and regulations are complied with c. prevent fraud, and promote the social interest of the company d. provide control over internal-use only reports and employee internal conduct ANS: B DIF: Easy OBJ: 08-02 NAT: AACSB Analytic | AICPA BB-Industry 5. Which one of the following below reflects a weak internal control system? a. all employees are well supervised b. a single employee is responsible for comparing a receiving report to an invoice c. all employees must take their vacations d. a single employee is responsible for collecting and recording of cash ANS: D DIF: Easy OBJ: 08-02 NAT: AACSB Analytic | AICPA BB-Industry 6. Internal control does not consist of policies and procedures that a. protect assets from misuse b. aid management in directing operations toward achieving business goal