Assignment 2- pg 1

Please answer all 3 subparts Question 1 (i) Which of the following statements is true?A. Conflicts of interests between management and stakeholders can result in bankruptcies or major frauds.B. It is the responsibility of internal audit to design and monitor controls that reasonably assure that objectives are met.C. Corporate Governance addresses the principal-agent relationship between management and directors on the one hand and the relationship between the company and suppliers on the other.D. The management board apprves the mission, vision, objectives and strategy of the entity. (ii) Which one of the following is NOT a reason for having board committees?A. An increase in the accountability of the board to the firm by reducing individual free-riding and enabling outside directors.B. A better performance of the board of directors by allowing a better monitoring through greater separation from management.C. Bringing a focus and appropriate expertise and specialisation to the…

Please answer all 3 subparts Question 1 (i) Which of the following is not an example of internal control risk?A. Risks of errors or fraud in accounting systems and accounting and finance activities.B. Risks that important laws and regulations will not be complied with properly.C. Risks that arise in the business environment and markets in which the company operatesD. The risk of losses resulting from inadequate or failed internal processes, people and systems or external events. (ii) Which of the following is NOT a statutory duty of a director?A. Duty to disclose any money received in connection of a transfer of company property.B. Duty to exercise due diligence in their work C. Duty to contribute an appropriate sum of money to the board on joining the companyD. Duty to keep proper accounting records and make such records available for inspection.  (iii) Which of the following would be the best way for a shareholder (not being an institutional shareholder) to become involved in the…

Question 2 (i) Which one of the following statements is true?A. Conflicts of interests between management and stakeholders can result inbankruptcies or major frauds.B. It is the responsibility of internal audit to design and monitor controls that reasonablyassure that objectives are met.C. Corporate governance addresses the principal–agent relationship betweenmanagement and directors on the one hand and the relationship between the companyand suppliers on the other.D. The management board approves the mission, vision, objectives and strategy of theentity. (ii) The agency theory stipulates that:A. Self-interest plays no role and is irrelevant.B. The management board is the agent.C. The management board is the principal.D. Information asymmetry is absent in corporate governance. (iii) Which of the following is not something performed by the company’s board?A. Day to day supervision of the sales manager.B. Appoints the corporate officers responsible for managing the company…

Understanding internal control, components, procedures, and laws Match the following terms with their definitions.

An internal control system consists of all policies and procedures used to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies.  Do you agree or disagree with this statement. Why or why not

Chester Company has established internal control policies and procedures in order to achieve the following objectives: 1) Effective evaluation of management performance. 2) Assure that the accounting records contain reliable information. 3) Safeguard the company's assets. 4) Assure that employees comply with company policy. Which of these objectives are achieved by accounting controls? Multiple Choice All four objectives Objectives 3 and 4 Objectives 1 and 2 Objectives 2 and 3

Which of the following is not considered to be part of the internal control structure of a company? Group of answer choices 1.Ensure that assets are kept secure. 2.Monitor operations of the organization to ensure maximum efficiency. 3.Publish accurate financial statements on a regular basis. 4.Ensure assets are properly used.

5. Please answer ASAP!!!

The primary responsibility of the board is to ensure that it develops a clear understanding of the bank’s business strategy and fundamental risks. The board also needs to ensure that: Group of answer choices C. Risks are verified through review of accounting and not economic practices. A. Risks are made transparent to stakeholders and managers. D. Both A & B B. Risks are made transparent legally through non-disclosure agreements.

Internal controls are crucial to ensuring that financial transactions are authorized and company records are maintained properly. Please explain some of the internal control procedures that accounting departments utilize to achieve the aforementioned goals. How do these internal controls help accounting departments achieve their objectives?

Question 8 organizations use the GAAP framework of internal control as a benchmark when assessing the effectiveness of internal control over financial reporting.  True  False

From pages 4-1 and 4-2 of the VLN, the COSO Framework describes 5 components of internal control. What is the purpose of internal controls from a financial accounting perspective? 1. To guarantee no fraud will occur in the organization. 2. To help safeguard the company's assets. 3. To help improve the accuracy and reliability of the accounting information. 4.To prevent collusion. Group of answer choices A. 1,2, and 3 B. 2 and 3 C. 2, 3, and 4 D.1, 2, 3, and 4

How can fraud be prevented in the making use of accounting information systems? How do ethics and internal control play key roles in reporting misstated financial statements? (Accounting Information System Tenth Edition by James Hall chapter 3)

S8-1 Definition of internal control Internal controls are designed to safeguard assets, encourage employees to follow company policies, promote operational efficiency and ensure accurate records. Which objective is most important? Which must the internal controls accomplish for the business to survive? Give your reasons.

QUESTION 1 The objectives of internal control are to a. provide control over "internal-use only" reports and employee internal conduct b. prevent fraud, and promote the social interest of the company c. provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are accurate, and laws and regulations are complied with d. control the internal organization of the accounting department personnel and equipment

Which of the following places more pressure on ethics officers to monitor financial and sales reporting? A B с D E Sarbanes-Oxley Act Federal Sentencing Guidelines for Employees Ethics Officer Responsibility Act Sherman Antitrust Act Enron Financial Responsibility Act