Test Bank For Survey of Accounting 7th edition 

Test Bank For Survey of Accounting 7th edition

1. The Sarbanes-Oxley Act of 2002 applies to all publicly held companies.
   1. True
   2. False

ANSWER:  True

1. The Sarbanes-Oxley Act of 2002 requires companies to maintain strong and effective internal controls over recording transactions and preparing financial statements.
   1. True
   2. False

ANSWER:  True

1. The Sarbanes-Oxley Act requires companies and their independent accountants to report on the effectiveness of the company’s internal controls.
   1. True
   2. False

ANSWER:  True

1. Employee fraud is the intentional act of deceiving an employer for personal gain.
   1. True
   2. False

ANSWER:  True

1. All organizations face risks, and the assessment of these risks is necessary so that the objectives of internal control can be achieved.
   1. True
   2. False

ANSWER:  True

1. The internal control environment is enhanced by the hiring and retention of competent, honest employees.
   1. True
   2. False

ANSWER:  True

1. There are only two internal control objectives: to ensure accurate financial reports, and to ensure compliance with applicable laws.
   1. True
   2. False

ANSWER:  False

8. Separating the responsibilities for purchasing, receiving, and paying for equipment is an example of the control procedure: separating operations, custody of assets, and accounting.

1. True
2. False

ANSWER:  True

1. Adding a review of operations by an internal audit staff weakens internal control.
   1. True
   2. False

ANSWER:  False