After certain high publicity frauds occurred, congress passed legislation that required auditors to give opinions on the internal controls of some publicly traded companies. This legislation was O the Sarbanes-Oxley Act O the Tax Cuts and Jobs Act O the Foreign Corrupt Practices Act O the Affordable Audit Act

After certain high publicity frauds occurred, congress passed legislation that required auditors to give opinions on the internal controls of some publicly traded companies. This legislation was O the Sarbanes-Oxley Act O the Tax Cuts and Jobs Act O the Foreign Corrupt Practices Act O the Affordable Audit Act

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In the normal course of performing their responsibilities, auditors often conduct audits or reviewsof the following:1. The computer operations of a large corporation to evaluate whether the internal controlsare likely to prevent misstatements in accounting and operating data.2. Financial statements for use by stockholders when there is an internal audit staff.3. A bond indenture agreement to make sure a company is following all requirements of thecontract.4. Internal controls at a casino to ensure the casino is in compliance with federal and stateregulations.5. Computer operations of a corporation to evaluate whether the computer center is beingoperated as efficiently as possible.6. Annual statements for the use of management.7. Operations of the IRS to determine whether the internal revenue agents are using theirtime efficiently in conducting audits.8. Statements for bankers and other creditors when the client is too small to have an auditstaff.9. Financial statements of a branch of…
4 Jamie is an auditor. While preparing to audit his client, FoodCourt, he finds a weakness in the company's internal control that might suggest that the company has a higher than normal risk, and revenue may have been recorded in the wrong period. Given this weakness, what information should be communicated to management? 5 What is the relationship between the internal control system and risk management with corporate governance? How can the internal control system enhance a company s corporate governance?
In June 2001, in Oman, the Capital Market Authority issued the Corporate Governance Code, applicable to companies whose securities are listed on the Muscat Securities Market.The Code, drawn from codes of best practices from around the world but adapted to the local market, seeks to promote a "culture of compliance, transparency and accountability without limiting business initiative. Comparing the Internal Auditors and External Auditors , which of the following is not true about Internal Audit a.The scope of the internal audit is decided by the Board of Directors b.The auditor is appointed by the Management c.It is performed by a separate internal auditing department d.It is conducted by the employees of the company
Indicate which of the following claims is true and which is untrue. Internal control processes' principal purpose is to protect the firm against theft by government entities.
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SOX, whistleblower awards is apparently wrong. Which else could be the right answer?
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