#24 Which is NOT a provision of Sarbanes-Oxley?O A. Auditors of public companies are under the scrutiny of the Public Company Accounting Oversight Board.O B. Those who commit securities fraud may be sentenced to 25 years in prison.OC. Accounting firms are allowed to provide both auditing services and a full range of consulting services to their public company clients.O D. Public companies must issue an internal control report evaluated by an outside auditor.QUESTION 24A check was written by a business for $205, but was recorded in the business' books as $502. How would this error be recorded on the bankreconciliation? (Hint: what has to be done to correct the error and who needs to correct it?)O A. A deduction on the book sideO B. An addition on the book sideO C. An addition on the bank sideO D.A deduction on the bank sideClick Save and Submit to save and submit. Click Save All Ansvers to save all answers.Save All AnswersBUS communicationacc 101 practice fin..Take Test: ACC 101 .

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QUESTION 24 A check was written by a business for $205, but was recorded in the business' books as $502. How would this error be recorded on the bank reconciliation? (Hint: what has to be done to correct the error and who needs to correct it?) O A. A deduction on the book side O B. An addition on the book side O C. An addition on the bank side O D. A deduction on the bank side Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers

QUESTION 24 A check was written by a business for $205, but was recorded in the business' books as $502. How would this error be recorded on the bank reconciliation? (Hint: what has to be done to correct the error and who needs to correct it?) O A. A deduction on the book side O B. An addition on the book side O C. An addition on the bank side O D. A deduction on the bank side Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter1: Comprehensive Cases

Section1.11: New Century Financial Corporation

Problem 3Q

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The external auditor of a company has certain requirements due to Sarbanes-Oxley. Which of the following best describes these requirements? A. The auditor is required to only report weaknesses in the internal control design of the company he or she is auditing. B. The auditor must issue an internal control report on the evaluation of internal controls overseen by the Public Company Accounting Oversight Board C. The auditor in charge can serve for a period of only two years. D. The Public Company Accounting Oversight Board reviews reports submitted by the auditors when no evaluations have been performed.
Which of the following statements is true of the Sarbanes−Oxley Act? A. All private and foreign companies must issue an internal control report evaluated by an outside auditor. B. Accounting firms are allowed to provide both auditing services and a full range of consulting services to their public company clients. C. Those who commit securities fraud must be sentenced to 10 years in prison. D. The Public Company Accounting Oversight Board oversees the work of auditors of public companies.
#23
Enron corporation: accounting fraud what five recommendations you would suggest to strengthen the independent audit function following the Enron sandal? what responsibilities, if any, do audit firm have with regard to the quarterly financial statements of their client?
28. You are auditing one of your firm’s clients that is listed on a Stock Exchange. The client has an audit committee formed of three independent non‐executive directors, as recommended by its country’s code of corporate governance. If you believe that a member of this client’s management is involved in fraud, to whom should this matter first be reported? a. Finance manager b. The Internal auditors c. Those charged with governance of the company d. Accounts manager
Match each of the numbered descriptions 1 through 7 with the term or phrase it best reflects. Indicate your answer by writing the letter A through G for the term or phrase in the blank provided. A. Ethics B. Fraud triangle C. Prevention D. Internal controls E. Sarbanes-Oxley Act 1. Requires the SEC to pay whistleblowers. 2. Examines whether financial statements are prepared using GAAP; it does not ensure absolute accuracy of the statements. 3. Requires documentation and verification of internal controls and increases emphasis on internal control effectiveness. 4. Procedures set up to protect company property and equipment, ensure reliable accounting, promote efficiency, and encourage adherence to policies. 5. A less expensive and more effective means to stop fraud. 6. Three factors push a person to commit fraud: opportunity, pressure, and rationalization. 7. Beliefs that distinguish right from wrong.
Which of the following is not a Sarbanes-Oxley Actrequirement intended to reduce fraud opportunities?a. Increase fines and jail sentences for fraud perpetrators.b. All public companies establish an audit committee ofindependent directors.c. Management of all public companies evaluates andreports on the effectiveness of internal control overfinancial reporting.d. External auditors of large public companies evaluateand report on the effectiveness of internal control overfinancial reporting.
27. An audit firm has been asked by a client to attend a meeting between the client and its bank where a new bank loan application is to be discussed. According to the Code of Professional Ethics for Accountants, what type of threat to objectivity will be created if the auditor attends this meeting? a. Self interest threat b. Intimidation threat c. None of the options d. Self review threat
Which of the following is not part of Sarbanes–Oxley?a. An increased duty on the part of auditors to identify financial statement fraud.b. A requirement that the CEO and CFO certify the financial statements.c. Increased penalties for destruction of records in federal investigations.d. Increased penalties for mail fraud and criminal violations of the Securities Exchange Actof 1934
What does the Sarbanes-Oxley Act of 2002 require the CEO and CFO to do? Multiple Choice All of these are requirements of the Sarbanes-Oxley Act of 2002. Take responsibility for signing financial statements. Stipulate that the financial statements do not omit material information. Disclose that they have evaluated the company's internal controls. Disclose that they have notified the company's auditors and the audit committee of the board of any fraud that involves management.
Accounting 20. Below is an internal control associated with some financial statement audit cycle that the auditors identified for one of their clients. Indicate the control activity that is being considered in question bonder this case. "The president of the company signs the checks once he compares the drawn check against the documents that substantiate the disbursement (underlying documents)." a. Segregation of tasks (adequate separation of duties) b. Adequate documents and records c. Physical controls over assets and records (physical controls) d. Proper authorization of transactions and activities
§301 of SOX requires corporate audit committees to: O take vacations annually. O have a majority of members who are CPAs. set up hotlines so employees can leave tips about fraud. Ohave a code of ethics.