AUD 3 Internal Control 11 - SOX & Basic Concepts

Question 1

Sarbanes - Oxley Act (SOX)

SOX created a variety of reg_______s and eliminated a significant portion of the accounting profession’s system of self-regulation.

Answer 1

Sarbanes - Oxley Act (SOX)

SOX created a variety of regulations and eliminated a significant portion of the accounting profession’s system of self-regulation.

Question 2

Sarbanes - Oxley Act (SOX)

SOX created a variety of regulations and eli_______ed a significant portion of the accounting profession’s system of self-regulation.

Answer 2

Sarbanes - Oxley Act (SOX)

SOX created a variety of regulations and eliminated a significant portion of the accounting profession’s system of self-regulation.

Question 3

Sarbanes - Oxley Act (SOX)

SOX created a variety of regulations and eliminated a significant portion of the accounting profession’s system of self-reg_______.

Answer 3

Sarbanes - Oxley Act (SOX)

SOX created a variety of regulations and eliminated a significant portion of the accounting profession’s system of self-regulation.

Question 4

Sarbanes - Oxley Act (SOX)

SOX created a variety of regulations and eliminated a significant portion of the accounting profession’s system of s__f-regulation.

Answer 4

Sarbanes - Oxley Act (SOX)

SOX created a variety of regulations and eliminated a significant portion of the accounting profession’s system of self-regulation.

Question 5

Sarbanes - Oxley Act (SOX)

SOX created a variety of regulations and eliminated a significant portion of the accounting profession’s system of self-regulation.

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports”
• The signing officers certify
• Officers are also required to report to auditors and to the audit committee

Answer 5

Sarbanes - Oxley Act (SOX)

SOX created a variety of regulations and eliminated a significant portion of the accounting profession’s system of self-regulation.

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports”
• The signing officers certify
• Officers are also required to report to auditors and to the audit committee

Question 6

Sarbanes - Oxley Act (SOX)

SOX created a variety of regulations and eliminated a significant portion of the accounting profession’s system of self-regulation.

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Fi_______ Reports”

Answer 6

Sarbanes - Oxley Act (SOX)

SOX created a variety of regulations and eliminated a significant portion of the accounting profession’s system of self-regulation.

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports”

Question 7

Sarbanes - Oxley Act (SOX)

SOX created a variety of regulations and eliminated a significant portion of the accounting profession’s system of self-regulation.

Some issues include:

• Section 302 is entitled “Cor______ Responsibility for Financial Reports”

Answer 7

Sarbanes - Oxley Act (SOX)

SOX created a variety of regulations and eliminated a significant portion of the accounting profession’s system of self-regulation.

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports”

Question 8

Sarbanes - Oxley Act (SOX)

SOX created a variety of regulations and eliminated a significant portion of the accounting profession’s system of self-regulation.

Some issues include:

• Section 302 is entitled “Corporate Res_______ility for Financial Reports”

Answer 8

Sarbanes - Oxley Act (SOX)

SOX created a variety of regulations and eliminated a significant portion of the accounting profession’s system of self-regulation.

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports”

Question 9

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports”

and requires that the prin____ executive officer and the principal financial officer, or their equivalents,

Answer 9

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports”

and requires that the principal executive officer and the principal financial officer, or their equivalents,

Question 10

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports”

and requires that the principal executive off____ and the principal financial officer, or their equivalents,

Answer 10

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports”

and requires that the principal executive officer and the principal financial officer, or their equivalents,

Question 11

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports”

and requires that the principal executive officer and the principal fin______ officer, or their equivalents,

Answer 11

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports”

and requires that the principal executive officer and the principal financial officer, or their equivalents,

Question 12

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports”

and requires that the principal executive officer and the principal financial officer, or their equivalents,

cer___y as to certain items on each annual or quarterly report:

Answer 12

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports”

and requires that the principal executive officer and the principal financial officer, or their equivalents,

certify as to certain items on each annual or quarterly report:

Question 13

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports”

and requires that the principal executive officer and the principal financial officer, or their equivalents,

certify as to certain items on each an____ or quarterly report:

Answer 13

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports”

and requires that the principal executive officer and the principal financial officer, or their equivalents,

certify as to certain items on each annual or quarterly report:

Question 14

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports”

and requires that the principal executive officer and the principal financial officer, or their equivalents,

certify as to certain items on each annual or qu_____ly report:

Answer 14

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports”

and requires that the principal executive officer and the principal financial officer, or their equivalents,

certify as to certain items on each annual or quarterly report:

Question 15

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports”

and requires that the principal executive officer and the principal financial officer, or their equivalents,

certify as to certain it__s on each annual or quarterly report:

Answer 15

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports”

and requires that the principal executive officer and the principal financial officer, or their equivalents,

certify as to certain items on each annual or quarterly report:

Question 16

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equiv_____s, certify as to certain items on each annual or quarterly report:

Answer 16

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

Question 17

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and re____es that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

Answer 17

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

Question 18

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has re____ed the report

Answer 18

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

Question 19

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the re____

Answer 19

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

Question 20

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing off____ has reviewed the report

Answer 20

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

Question 21

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

o Based on the signer’s knowledge, the report does not contain a ma_______ untrue statement or omit a material fact

Answer 21

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact

Question 22

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

o Based on the signer’s know_____, the report does not contain a material untrue statement or omit a material fact

Answer 22

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact

Question 23

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

o Based on the signer’s knowledge, the report does not contain a material unt___ statement or o___ a material fact

Answer 23

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact

Question 24

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material f___

Answer 24

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact

Question 25

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact

o Based on the signer’s knowledge, the financial statements and other information are f___ly presented

Answer 25

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact

o Based on the signer’s knowledge, the financial statements and other information are fairly presented

Question 26

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact

o Based on the signer’s knowledge, the financial statements and other information are fairly pre____ted

Answer 26

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact

o Based on the signer’s knowledge, the financial statements and other information are fairly presented

Question 27

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

o Based on the signer’s know_____, the report does not contain a material untrue statement or omit a material fact

o Based on the signer’s know_____, the financial statements and other information are fairly presented

Answer 27

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact

o Based on the signer’s knowledge, the financial statements and other information are fairly presented

Question 28

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact

o Based on the signer’s knowledge, the financial statements and other information are fairly presented

Answer 28

Sarbanes - Oxley Act (SOX)

Some issues include:

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact

o Based on the signer’s knowledge, the financial statements and other information are fairly presented

Question 29

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They are respo______ for establishing and maintaining internal controls

Answer 29

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They are responsible for establishing and maintaining internal controls

Question 30

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They are responsible for est______ing and maintaining internal controls

Answer 30

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They are responsible for establishing and maintaining internal controls

Question 31

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They are responsible for establishing and main____ing internal controls

Answer 31

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They are responsible for establishing and maintaining internal controls

Question 32

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They are responsible for establishing and maintaining internal controls

o They have designed those con____s to ensure the receipt of all relevant information during those periods in which periodic reports are being prepared

Answer 32

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They are responsible for establishing and maintaining internal controls

o They have designed those controls to ensure the receipt of all relevant information during those periods in which periodic reports are being prepared

Question 33

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They are responsible for establishing and maintaining internal controls

o They have designed those controls to ensure the receipt of all rele____ information during those periods in which periodic reports are being prepared

Answer 33

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They are responsible for establishing and maintaining internal controls

o They have designed those controls to ensure the receipt of all relevant information during those periods in which periodic reports are being prepared

Question 34

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have designed those controls to ensure the receipt of all relevant information during those pe____s in which periodic reports are being prepared

Answer 34

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have designed those controls to ensure the receipt of all relevant information during those periods in which periodic reports are being prepared

Question 35

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have de____ed those controls to ensure the receipt of all relevant information during those periods in which periodic reports are being prepared

Answer 35

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have designed those controls to ensure the receipt of all relevant information during those periods in which periodic reports are being prepared

Question 36

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have designed those controls to ensure the receipt of all relevant information during those periods in which periodic re____s are being prepared

Answer 36

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have designed those controls to ensure the receipt of all relevant information during those periods in which periodic reports are being prepared

Question 37

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have designed those controls to ensure the receipt of all relevant information during those periods in which periodic reports are being prepared

o They have eva____d the effectiveness of internal controls within 90 days prior to the report

Answer 37

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have designed those controls to ensure the receipt of all relevant information during those periods in which periodic reports are being prepared

o They have evaluated the effectiveness of internal controls within 90 days prior to the report

Question 38

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have designed those controls to ensure the receipt of all relevant information during those periods in which periodic reports are being prepared

o They have evaluated the effe_______ess of internal controls within 90 days prior to the report

Answer 38

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have designed those controls to ensure the receipt of all relevant information during those periods in which periodic reports are being prepared

o They have evaluated the effectiveness of internal controls within 90 days prior to the report

Question 39

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have designed those controls to ensure the receipt of all relevant information during those periods in which periodic reports are being prepared

o They have evaluated the effectiveness of internal controls within 90 ___s prior to the report

Answer 39

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have designed those controls to ensure the receipt of all relevant information during those periods in which periodic reports are being prepared

o They have evaluated the effectiveness of internal controls within 90 days prior to the report

Question 40

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have evaluated the effectiveness of internal controls within __ days prior to the report

Answer 40

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have evaluated the effectiveness of internal controls within 90 days prior to the report

Question 41

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have evaluated the effectiveness of internal controls with__ 90 days prior to the report

Answer 41

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have evaluated the effectiveness of internal controls within 90 days prior to the report

Question 42

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have evaluated the effectiveness of internal controls within 90 days pr___ to the report

Answer 42

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have evaluated the effectiveness of internal controls within 90 days prior to the report

Question 43

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have evaluated the effectiveness of internal controls within 90 days prior to the report

o They have presented their conc______s about the effectiveness of internal controls in the report

Answer 43

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have evaluated the effectiveness of internal controls within 90 days prior to the report

o They have presented their conclusions about the effectiveness of internal controls in the report

Question 44

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have evaluated the effectiveness of internal controls within 90 days prior to the report

o They have presented their conclusions about the effe______ess of internal controls in the report

Answer 44

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have evaluated the effectiveness of internal controls within 90 days prior to the report

o They have presented their conclusions about the effectiveness of internal controls in the report

Question 45

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have pre____ed their conclusions about the effectiveness of internal controls in the report

Answer 45

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have presented their conclusions about the effectiveness of internal controls in the report

Question 46

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have presented their conclusions about the effectiveness of internal controls in the re____

Answer 46

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They have presented their conclusions about the effectiveness of internal controls in the report

Question 47

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers c_____y that:

o They are responsible for establishing and maintaining internal controls

o They have designed those controls to ensure the receipt of all relevant information during those periods in which periodic reports are being prepared

o They have evaluated the effectiveness of internal controls within 90 days prior to the report

o They have presented their conclusions about the effectiveness of internal controls in the report

Answer 47

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They are responsible for establishing and maintaining internal controls

o They have designed those controls to ensure the receipt of all relevant information during those periods in which periodic reports are being prepared

o They have evaluated the effectiveness of internal controls within 90 days prior to the report

o They have presented their conclusions about the effectiveness of internal controls in the report

Question 48

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They are responsible for establishing and maintaining internal controls

o They have designed those controls to ensure the receipt of all relevant information during those periods in which periodic reports are being prepared

o They have evaluated the effectiveness of internal controls within 90 days prior to the report

o They have presented their conclusions about the effectiveness of internal controls in the report

Answer 48

Sarbanes - Oxley Act (SOX)

Some issues include:

• In addition, the signing officers certify that:

o They are responsible for establishing and maintaining internal controls

o They have designed those controls to ensure the receipt of all relevant information during those periods in which periodic reports are being prepared

o They have evaluated the effectiveness of internal controls within 90 days prior to the report

o They have presented their conclusions about the effectiveness of internal controls in the report

Question 49

Sarbanes - Oxley Act (SOX)

Some issues include:

• Offi___s are also required to report to auditors and to the audit committee:

Answer 49

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit committee:

Question 50

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also r_____ed to report to auditors and to the audit committee:

Answer 50

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit committee:

Question 51

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit com_______:

Answer 51

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit committee:

Question 52

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit committee:

o All sig_______ deficiencies that could adversely affect the reporting process and any material weaknesses

Answer 52

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit committee:

o All significant deficiencies that could adversely affect the reporting process and any material weaknesses

Question 53

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit committee:

o All significant deficiencies that could adve___ly affect the reporting process and any material weaknesses

Answer 53

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit committee:

o All significant deficiencies that could adversely affect the reporting process and any material weaknesses

Question 54

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit committee:

o All significant deficiencies that could adversely affect the reporting pr___ss and any material weaknesses

Answer 54

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit committee:

o All significant deficiencies that could adversely affect the reporting process and any material weaknesses

Question 55

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit committee:

o All significant deficiencies that could adversely affect the reporting process and any mat_____ weaknesses

Answer 55

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit committee:

o All significant deficiencies that could adversely affect the reporting process and any material weaknesses

Question 56

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit committee:

o All significant deficiencies that could adversely affect the reporting process and any material weaknesses

o Any f____ (whether material or not) involving management or employees with a role in internal controls

Answer 56

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit committee:

o All significant deficiencies that could adversely affect the reporting process and any material weaknesses

o Any fraud (whether material or not) involving management or employees with a role in internal controls

Question 57

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit committee:

o All significant deficiencies that could adversely affect the reporting process and any material weaknesses

o Any fraud (whether material or n__) involving management or employees with a role in internal controls

Answer 57

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit committee:

o All significant deficiencies that could adversely affect the reporting process and any material weaknesses

o Any fraud (whether material or not) involving management or employees with a role in internal controls

Question 58

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit committee:

o All significant deficiencies that could adversely affect the reporting process and any material weaknesses

o Any fraud (whether material or not) involving ma_________ or employees with a role in internal controls

Answer 58

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit committee:

o All significant deficiencies that could adversely affect the reporting process and any material weaknesses

o Any fraud (whether material or not) involving management or employees with a role in internal controls

Question 59

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit committee:

o All significant deficiencies that could adversely affect the reporting process and any material weaknesses

o Any fraud (whether material or not) involving management or employees with a role in internal co_____s

Answer 59

Sarbanes - Oxley Act (SOX)

Some issues include:

• Officers are also required to report to auditors and to the audit committee:

o All significant deficiencies that could adversely affect the reporting process and any material weaknesses

o Any fraud (whether material or not) involving management or employees with a role in internal controls

Question 60

Sarbanes - Oxley Act (SOX)

SOX created a variety of regulations and eliminated a significant portion of the accounting profession’s system of self-regulation. Some issues include:

• Section 302 “Corporate Responsibility for Financial Reports” - requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report
o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact
o Based on the signer’s knowledge, the financial statements and other information are fairly presented

• In addition, the signing officers certify that:

o They are responsible for establishing and maintaining internal controls
o They have designed those controls to ensure the receipt of all relevant information during those periods in which periodic reports are being prepared
o They have evaluated the effectiveness of internal controls within 90 days prior to the report
o They have presented their conclusions about the effectiveness of internal controls in the report

• Officers are also required to report to auditors and to the audit committee:

o All significant deficiencies that could adversely affect the reporting process and any material weaknesses
o Any fraud (whether material or not) involving management or employees with a role in internal controls

Answer 60

Sarbanes - Oxley Act (SOX)

SOX created a variety of regulations and eliminated a significant portion of the accounting profession’s system of self-regulation. Some issues include:

• Section 302 “Corporate Responsibility for Financial Reports” - requires that the principal executive officer and the principal financial officer, or their equivalents, certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report
o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact
o Based on the signer’s knowledge, the financial statements and other information are fairly presented

• In addition, the signing officers certify that:

o They are responsible for establishing and maintaining internal controls
o They have designed those controls to ensure the receipt of all relevant information during those periods in which periodic reports are being prepared
o They have evaluated the effectiveness of internal controls within 90 days prior to the report
o They have presented their conclusions about the effectiveness of internal controls in the report

• Officers are also required to report to auditors and to the audit committee:

o All significant deficiencies that could adversely affect the reporting process and any material weaknesses
o Any fraud (whether material or not) involving management or employees with a role in internal controls

Question 61

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of m___________, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

Answer 61

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

Question 62

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong con____ environment combined with excellent control activities is subject to certain inherent limitations (COCO):

Answer 62

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

Question 63

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment com____ed with excellent control activities is subject to certain inherent limitations (COCO):

Answer 63

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

Question 64

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control ac____ies is subject to certain inherent limitations (COCO):

Answer 64

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

Question 65

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inhe____ limitations (COCO):

Answer 65

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

Question 66

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limi______s (COCO):

Answer 66

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

Question 67

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

Answer 67

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

Question 68

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Coll______
• Override by management
• Competence/Human error
• Obsolescence

Answer 68

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

Question 69

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Over____ by management
• Competence/Human error
• Obsolescence

Answer 69

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

Question 70

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by m__________
• Competence/Human error
• Obsolescence

Answer 70

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

Question 71

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Hu___ error
• Obsolescence

Answer 71

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

Question 72

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Com_______/Human error
• Obsolescence

Answer 72

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

Question 73

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human er___
• Obsolescence

Answer 73

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

Question 74

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human error
• Obsol________

Answer 74

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

Question 75

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (C____):

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

Answer 75

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

Question 76

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
– Control activities that depend on segr______ of duties will not be effective if those engaged in the segregated functions conspire with one another.

Answer 76

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
– Control activities that depend on segregation of duties will not be effective if those engaged in the segregated functions conspire with one another.

Question 77

Basic Concepts and Internal Control Limitations

• Collusion
– Control activities that depend on segregation of duties will n__ be effective if those engaged in the segregated functions conspire with one another.

Answer 77

Basic Concepts and Internal Control Limitations

• Collusion
– Control activities that depend on segregation of duties will not be effective if those engaged in the segregated functions conspire with one another.

Question 78

Basic Concepts and Internal Control Limitations

• Collusion
– Control activities that depend on segregation of duties will not be effective if those engaged in the segregated functions consp___ with one another.

Answer 78

Basic Concepts and Internal Control Limitations

• Collusion
– Control activities that depend on segregation of duties will not be effective if those engaged in the segregated functions conspire with one another.

Question 79

Basic Concepts and Internal Control Limitations

• Collusion
– Control activities that depend on segregation of duties will not be effe_____ if those engaged in the segregated functions conspire with one another.

Answer 79

Basic Concepts and Internal Control Limitations

• Collusion
– Control activities that depend on segregation of duties will not be effective if those engaged in the segregated functions conspire with one another.

Question 80

Basic Concepts and Internal Control Limitations

• Collusion
– Co_____ activities that depend on segregation of duties will not be effective if those engaged in the segregated functions conspire with one another.

Answer 80

Basic Concepts and Internal Control Limitations

• Collusion
– Control activities that depend on segregation of duties will not be effective if those engaged in the segregated functions conspire with one another.

Question 81

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

• Override by management
– Since management de___ns and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

Answer 81

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

Question 82

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and imp________s the system of internal control, it is in a position to override it,

Answer 82

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it,

Question 83

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to ove_____ it,

so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

Answer 83

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it,

so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

Question 84

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it,

so that even an effe______ internal control structure cannot be expected to prevent intentional misbehavior by management.

Answer 84

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it,

so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

Question 85

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it,

so that even an effective internal control structure can___ be expected to prevent intentional misbehavior by management.

Answer 85

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it,

so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

Question 86

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it,

so that even an effective internal control structure cannot be expected to pre____ intentional misbehavior by management.

Answer 86

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it,

so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

Question 87

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it,

so that even an effective internal control structure cannot be expected to prevent inten______ misbehavior by management.

Answer 87

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it,

so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

Question 88

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it,

so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by m___________.

Answer 88

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it,

so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

Question 89

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor m___ establish the integrity of management before accepting the engagement.

Answer 89

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the integrity of management before accepting the engagement.

Question 90

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the inte_____ of management before accepting the engagement.

Answer 90

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the integrity of management before accepting the engagement.

Question 91

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the integrity of management be____ accepting the engagement.

Answer 91

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the integrity of management before accepting the engagement.

Question 92

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the integrity of management before accepting the engagement.

It is also imp________ to establish whether employee personnel have ever been asked to override systems of internal control by management.

Answer 92

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the integrity of management before accepting the engagement.

It is also important to establish whether employee personnel have ever been asked to override systems of internal control by management.

Question 93

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the integrity of management before accepting the engagement.

It is also important to establish whether em_____ee personnel have ever been asked to override systems of internal control by management.

Answer 93

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the integrity of management before accepting the engagement.

It is also important to establish whether employee personnel have ever been asked to override systems of internal control by management.

Question 94

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the integrity of management before accepting the engagement.

It is also important to establish whether employee personnel have ever been a__ed to override systems of internal control by management.

Answer 94

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the integrity of management before accepting the engagement.

It is also important to establish whether employee personnel have ever been asked to override systems of internal control by management.

Question 95

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the integrity of management before accepting the engagement.

It is also important to establish whether employee personnel have ever been asked to ove_____ systems of internal control by management.

Answer 95

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the integrity of management before accepting the engagement.

It is also important to establish whether employee personnel have ever been asked to override systems of internal control by management.

Question 96

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the integrity of management before accepting the engagement.

It is also important to establish whether employee personnel have ever been asked to override systems of internal con____ by management.

Answer 96

Basic Concepts and Internal Control Limitations

• Override by management
– Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the integrity of management before accepting the engagement.

It is also important to establish whether employee personnel have ever been asked to override systems of internal control by management.

Question 97

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

• Competence/Human error
– If con____ procedures are erroneously applied, they will not be effective. Internal control cannot be expected to prevent mistakes in human judgment (misjudgment).

Answer 97

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

• Competence/Human error
– If control procedures are erroneously applied, they will not be effective. Internal control cannot be expected to prevent mistakes in human judgment (misjudgment).

Question 98

Basic Concepts and Internal Control Limitations

• Competence/Human error
– If control procedures are err_______ly applied, they will not be effective.

Answer 98

Basic Concepts and Internal Control Limitations

• Competence/Human error
– If control procedures are erroneously applied, they will not be effective.

Question 99

Basic Concepts and Internal Control Limitations

• Competence/Human error
– If control procedures are erroneously a__lied, they will not be effective.

Answer 99

Basic Concepts and Internal Control Limitations

• Competence/Human error
– If control procedures are erroneously applied, they will not be effective.

Question 100

Basic Concepts and Internal Control Limitations

• Competence/Human error
– If control procedures are erroneously applied, they will n__ be effective.

Answer 100

Basic Concepts and Internal Control Limitations

• Competence/Human error
– If control procedures are erroneously applied, they will not be effective.

Question 101

Basic Concepts and Internal Control Limitations

• Competence/Human error
– If control procedures are erroneously applied, they will not be effective.

Internal control can___ be expected to prevent mistakes in human judgment (misjudgment).

Answer 101

Basic Concepts and Internal Control Limitations

• Competence/Human error
– If control procedures are erroneously applied, they will not be effective.

Internal control cannot be expected to prevent mistakes in human judgment (misjudgment).

Question 102

Basic Concepts and Internal Control Limitations

• Competence/Human error
– If control procedures are erroneously applied, they will not be effective.

Internal control cannot be expected to prev___ mistakes in human judgment (misjudgment).

Answer 102

Basic Concepts and Internal Control Limitations

• Competence/Human error
– If control procedures are erroneously applied, they will not be effective.

Internal control cannot be expected to prevent mistakes in human judgment (misjudgment).

Question 103

Basic Concepts and Internal Control Limitations

• Competence/Human error
– If control procedures are erroneously applied, they will not be effective.

Internal control cannot be expected to prevent mistakes in human judg____ (misjudgment).

Answer 103

Basic Concepts and Internal Control Limitations

• Competence/Human error
– If control procedures are erroneously applied, they will not be effective.

Internal control cannot be expected to prevent mistakes in human judgment (misjudgment).

Question 104

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

• Obsolescence
– A g__d internal control structure may cease to be effective due to changes in the company’s operations or size, changes in technology, or other changes affecting the way the entity’s business is transacted.

Answer 104

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

• Obsolescence
– A good internal control structure may cease to be effective due to changes in the company’s operations or size, changes in technology, or other changes affecting the way the entity’s business is transacted.

Question 105

Basic Concepts and Internal Control Limitations

• Obsolescence
– A good internal control structure may cease to be effective due to
ch___es in the company’s operations or size,
changes in technology, or
other changes affecting the way the entity’s business is transacted.

Answer 105

Basic Concepts and Internal Control Limitations

• Obsolescence
– A good internal control structure may cease to be effective due to
changes in the company’s operations or size,
changes in technology, or
other changes affecting the way the entity’s business is transacted.

Question 106

Basic Concepts and Internal Control Limitations

• Obsolescence
– A good internal control structure may cease to be effective due to
changes in the company’s operations or s___,
changes in technology, or
other changes affecting the way the entity’s business is transacted.

Answer 106

Basic Concepts and Internal Control Limitations

• Obsolescence
– A good internal control structure may cease to be effective due to
changes in the company’s operations or size,
changes in technology, or
other changes affecting the way the entity’s business is transacted.

Question 107

Basic Concepts and Internal Control Limitations

• Obsolescence
– A good internal control structure may cease to be effective due to
changes in the company’s operations or size,
changes in tech_____y, or
other changes affecting the way the entity’s business is transacted.

Answer 107

Basic Concepts and Internal Control Limitations

• Obsolescence
– A good internal control structure may cease to be effective due to
changes in the company’s operations or size,
changes in technology, or
other changes affecting the way the entity’s business is transacted.

Question 108

Basic Concepts and Internal Control Limitations

• Obsolescence
– A good internal control structure may cease to be effective due to
changes in the company’s operations or size,
changes in technology, or
o___r changes affecting the way the entity’s business is transacted.

Answer 108

Basic Concepts and Internal Control Limitations

• Obsolescence
– A good internal control structure may cease to be effective due to
changes in the company’s operations or size,
changes in technology, or
other changes affecting the way the entity’s business is transacted.

Question 109

Basic Concepts and Internal Control Limitations

• Obsolescence
– A good internal control structure may cease to be effective due to
changes in the company’s operations or size,
changes in technology, or
other changes affecting the way the entity’s business is tran____ed.

Answer 109

Basic Concepts and Internal Control Limitations

• Obsolescence
– A good internal control structure may cease to be effective due to
changes in the company’s operations or size,
changes in technology, or
other changes affecting the way the entity’s business is transacted.

Question 110

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human error
• Obsolescence
• Collusion – Control activities that depend on segregation of duties will not be effective if those engaged in the segregated functions conspire with one another.
• Override by management – Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the integrity of management before accepting the engagement.

It is also important to establish whether employee personnel have ever been asked to override systems of internal control by management.

• Competence/Human error – If control procedures are erroneously applied, they will not be effective. Internal control cannot be expected to prevent mistakes in human judgment (misjudgment).
• Obsolescence – A good internal control structure may cease to be effective due to changes in the company’s operations or size, changes in technology, or other changes affecting the way the entity’s business is transacted.

Answer 110

Basic Concepts and Internal Control Limitations

Regardless of the good intentions of management, even a strong control environment combined with excellent control activities is subject to certain inherent limitations (COCO):

• Collusion
• Override by management
• Competence/Human error
• Obsolescence
• Collusion – Control activities that depend on segregation of duties will not be effective if those engaged in the segregated functions conspire with one another.
• Override by management – Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the integrity of management before accepting the engagement.

It is also important to establish whether employee personnel have ever been asked to override systems of internal control by management.

• Competence/Human error – If control procedures are erroneously applied, they will not be effective. Internal control cannot be expected to prevent mistakes in human judgment (misjudgment).
• Obsolescence – A good internal control structure may cease to be effective due to changes in the company’s operations or size, changes in technology, or other changes affecting the way the entity’s business is transacted.

Question 111

Basic Concepts and Internal Control Limitations

Inherent limitations (COCO):

• Coll_____ – Control activities that depend on segregation of duties will not be effective if those engaged in the segregated functions conspire with one another.
• Ove_____ by management – Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the integrity of management before accepting the engagement.

It is also important to establish whether employee personnel have ever been asked to override systems of internal control by management.

• Com_______/Human error – If control procedures are erroneously applied, they will not be effective. Internal control cannot be expected to prevent mistakes in human judgment (misjudgment).
• Obs________ – A good internal control structure may cease to be effective due to changes in the company’s operations or size, changes in technology, or other changes affecting the way the entity’s business is transacted.

Answer 111

Basic Concepts and Internal Control Limitations

Inherent limitations (COCO):

• Collusion – Control activities that depend on segregation of duties will not be effective if those engaged in the segregated functions conspire with one another.
• Override by management – Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the integrity of management before accepting the engagement.

It is also important to establish whether employee personnel have ever been asked to override systems of internal control by management.

• Competence/Human error – If control procedures are erroneously applied, they will not be effective. Internal control cannot be expected to prevent mistakes in human judgment (misjudgment).
• Obsolescence – A good internal control structure may cease to be effective due to changes in the company’s operations or size, changes in technology, or other changes affecting the way the entity’s business is transacted.

Question 112

Internal Control

It is essential to keep in mind the concept of reasonable as________ as it relates to internal control, taking into account the cost/benefit factor.

Answer 112

Internal Control

It is essential to keep in mind the concept of reasonable assurance as it relates to internal control, taking into account the cost/benefit factor.

Question 113

Internal Control

It is essential to keep in mind the concept of rea________ assurance as it relates to internal control, taking into account the cost/benefit factor.

Answer 113

Internal Control

It is essential to keep in mind the concept of reasonable assurance as it relates to internal control, taking into account the cost/benefit factor.

Question 114

Internal Control

It is essential to keep in mind the concept of reasonable assurance as it relates to internal control, taking into account the c___/benefit factor.

Answer 114

Internal Control

It is essential to keep in mind the concept of reasonable assurance as it relates to internal control, taking into account the cost/benefit factor.

Question 115

Internal Control

It is essential to keep in mind the concept of reasonable assurance as it relates to internal control, taking into account the cost/benefit factor.

Even if it were pos_____ to design a perfect system of internal control, management would not do so, since there are costs involved in any action, and the costs of the internal control structure should not exceed the benefits.

Answer 115

Internal Control

It is essential to keep in mind the concept of reasonable assurance as it relates to internal control, taking into account the cost/benefit factor.

Even if it were possible to design a perfect system of internal control, management would not do so, since there are costs involved in any action, and the costs of the internal control structure should not exceed the benefits.

Question 116

Internal Control

It is essential to keep in mind the concept of reasonable assurance as it relates to internal control, taking into account the cost/benefit factor.

Even if it were possible to design a perfect system of internal control, management would n__ do so, since there are costs involved in any action, and the costs of the internal control structure should not exceed the benefits.

Answer 116

Internal Control

It is essential to keep in mind the concept of reasonable assurance as it relates to internal control, taking into account the cost/benefit factor.

Even if it were possible to design a perfect system of internal control, management would not do so, since there are costs involved in any action, and the costs of the internal control structure should not exceed the benefits.

Question 117

Internal Control

It is essential to keep in mind the concept of reasonable assurance as it relates to internal control, taking into account the cost/benefit factor.

Even if it were possible to design a perfect system of internal control, management would not do so, since there are c___s involved in any action, and the costs of the internal control structure should not exceed the benefits.

Answer 117

Internal Control

It is essential to keep in mind the concept of reasonable assurance as it relates to internal control, taking into account the cost/benefit factor.

Even if it were possible to design a perfect system of internal control, management would not do so, since there are costs involved in any action, and the costs of the internal control structure should not exceed the benefits.

Question 118

Internal Control

It is essential to keep in mind the concept of reasonable assurance as it relates to internal control, taking into account the cost/benefit factor.

Even if it were possible to design a perfect system of internal control, management would not do so, since there are costs involved in any action, and the costs of the internal control structure should n__ exceed the benefits.

Answer 118

Internal Control

It is essential to keep in mind the concept of reasonable assurance as it relates to internal control, taking into account the cost/benefit factor.

Even if it were possible to design a perfect system of internal control, management would not do so, since there are costs involved in any action, and the costs of the internal control structure should not exceed the benefits.

Question 119

Internal Control

It is essential to keep in mind the concept of reasonable assurance as it relates to internal control, taking into account the cost/benefit factor.

Even if it were possible to design a perfect system of internal control, management would not do so, since there are costs involved in any action, and the costs of the internal control structure should not exceed the benefits.

As a result, management may sometimes reasonably ref___ to remedy a deficiency in internal control that it knows exists.

Answer 119

Internal Control

It is essential to keep in mind the concept of reasonable assurance as it relates to internal control, taking into account the cost/benefit factor.

Even if it were possible to design a perfect system of internal control, management would not do so, since there are costs involved in any action, and the costs of the internal control structure should not exceed the benefits.

As a result, management may sometimes reasonably refuse to remedy a deficiency in internal control that it knows exists.

Question 120

Internal Control

It is essential to keep in mind the concept of reasonable assurance as it relates to internal control, taking into account the cost/benefit factor.

Even if it were possible to design a perfect system of internal control, management would not do so, since there are costs involved in any action, and the costs of the internal control structure should not exceed the benefits.

As a result, management may sometimes reasonably refuse to remedy a defi_____y in internal control that it knows exists.

Answer 120

Internal Control

It is essential to keep in mind the concept of reasonable assurance as it relates to internal control, taking into account the cost/benefit factor.

Even if it were possible to design a perfect system of internal control, management would not do so, since there are costs involved in any action, and the costs of the internal control structure should not exceed the benefits.

As a result, management may sometimes reasonably refuse to remedy a deficiency in internal control that it knows exists.

Question 121

Internal Control

The auditor is required to respond to m__________ override of controls

Answer 121

Internal Control

The auditor is required to respond to management override of controls

Question 122

Internal Control

The auditor is re____ed to respond to management override of controls

Answer 122

Internal Control

The auditor is required to respond to management override of controls

Question 123

Internal Control

The auditor is required to respond to management over____ of controls

Answer 123

Internal Control

The auditor is required to respond to management override of controls

Question 124

Internal Control

The auditor is required to respond to management override of controls

– Because management is often in a position to ove_____ controls in order to commit financial statement fraud,

Answer 124

Internal Control

The auditor is required to respond to management override of controls

– Because management is often in a position to override controls in order to commit financial statement fraud,

Question 125

Internal Control

The auditor is required to respond to management override of controls

– Because management is often in a position to override controls in order to commit financial statement fr___,

Answer 125

Internal Control

The auditor is required to respond to management override of controls

– Because management is often in a position to override controls in order to commit financial statement fraud,

Question 126

Internal Control

The auditor is required to respond to management override of controls

– Because management is often in a position to override controls in order to commit financial statement fraud,

the standard includes proc_____s to test for management override of controls on every audit.

Answer 126

Internal Control

The auditor is required to respond to management override of controls

– Because management is often in a position to override controls in order to commit financial statement fraud,

the standard includes procedures to test for management override of controls on every audit.

Question 127

Internal Control

The auditor is required to respond to management override of controls

– Because management is often in a position to override controls in order to commit financial statement fraud,

the standard includes procedures to t__t for management override of controls on every audit.

Answer 127

Internal Control

The auditor is required to respond to management override of controls

– Because management is often in a position to override controls in order to commit financial statement fraud,

the standard includes procedures to test for management override of controls on every audit.

Question 128

Internal Control

The auditor is required to respond to management override of controls

– Because management is often in a position to override controls in order to commit financial statement fraud,

the standard includes procedures to test for management override of controls on ev__y audit.

Answer 128

Internal Control

The auditor is required to respond to management override of controls

– Because management is often in a position to override controls in order to commit financial statement fraud,

the standard includes procedures to test for management override of controls on every audit.

Question 129

Internal Control

It should be noted that even a properly pl___ed and performed audit may not detect a material misstatement resulting from fraud because of

Answer 129

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

Question 130

Internal Control

It should be noted that even a properly planned and performed audit may n__ detect a material misstatement resulting from fraud because of

Answer 130

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

Question 131

Internal Control

It should be noted that even a properly planned and performed audit may not de____ a material misstatement resulting from fraud because of

Answer 131

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because ofs.

Question 132

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from f____ because of

Answer 132

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

Question 133

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) conce______ aspects of fraudulent activity,

Answer 133

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity,

Question 134

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity,
including the fact that fraud often involves coll_____ or falsified documents,

Answer 134

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity,
including the fact that fraud often involves collusion or falsified documents,

Question 135

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity,
including the fact that fraud often involves collusion or f_____ied documents,

Answer 135

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity,
including the fact that fraud often involves collusion or falsified documents, .

Question 136

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity,
including the fact that fraud often involves collusion or falsified doc_______s,

Answer 136

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity,
including the fact that fraud often involves collusion or falsified documents,

Question 137

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity,
including the fact that fraud often involves collusion or falsified documents, and

(2) the need to a__ly professional judgment in the identification

Answer 137

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity,
including the fact that fraud often involves collusion or falsified documents, and

(2) the need to apply professional judgment in the identification

Question 138

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity,
including the fact that fraud often involves collusion or falsified documents, and

(2) the need to apply professional jud______ in the identification

Answer 138

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity,
including the fact that fraud often involves collusion or falsified documents, and

(2) the need to apply professional judgment in the identification

Question 139

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity,
including the fact that fraud often involves collusion or falsified documents, and

(2) the need to apply professional judgment in the identi_______
or evaluation of fraud risk factors and other conditions.

Answer 139

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity,
including the fact that fraud often involves collusion or falsified documents, and

(2) the need to apply professional judgment in the identification
or evaluation of fraud risk factors and other conditions.

Question 140

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity,
including the fact that fraud often involves collusion or falsified documents, and

(2) the need to apply professional judgment in the identification
or eva______ of fraud risk factors and other conditions.

Answer 140

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity,
including the fact that fraud often involves collusion or falsified documents, and

(2) the need to apply professional judgment in the identification
or evaluation of fraud risk factors and other conditions.

Question 141

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity,
including the fact that fraud often involves collusion or falsified documents, and

(2) the need to apply professional judgment in the identification
or evaluation of fraud risk fac___s and other conditions.

Answer 141

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity,
including the fact that fraud often involves collusion or falsified documents, and

(2) the need to apply professional judgment in the identification
or evaluation of fraud risk factors and other conditions.

Question 142

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity,
including the fact that fraud often involves collusion or falsified documents, and

(2) the need to apply professional judgment in the identification or evaluation of fraud risk factors and other con_______s.

Answer 142

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity,
including the fact that fraud often involves collusion or falsified documents, and

(2) the need to apply professional judgment in the identification or evaluation of fraud risk factors and other conditions.

Question 143

Internal Control

It should be noted that even a properly planned and perf____ed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity, including the fact that fraud often involves collusion or falsified documents, and
(2) the need to apply professional judgment in the identification or evaluation of fraud risk factors and other conditions.

Answer 143

Internal Control

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity, including the fact that fraud often involves collusion or falsified documents, and
(2) the need to apply professional judgment in the identification or evaluation of fraud risk factors and other conditions.

Question 144

Internal Control

The auditor is required to respond to management override of controls

– Because management is often in a position to override controls in order to commit financial-statement fraud,

the standard includes procedures to test for management override of controls on every audit.

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity, including the fact that fraud often involves collusion or falsified documents, and
(2) the need to apply professional judgment in the identification or evaluation of fraud risk factors and other conditions.

Answer 144

Internal Control

The auditor is required to respond to management override of controls

– Because management is often in a position to override controls in order to commit financial-statement fraud,

the standard includes procedures to test for management override of controls on every audit.

It should be noted that even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity, including the fact that fraud often involves collusion or falsified documents, and
(2) the need to apply professional judgment in the identification or evaluation of fraud risk factors and other conditions.

Question 145

SOX =

Answer 145

SOX = Sarbanes - Oxley Act

Question 146

Sarbanes - Oxley Act eliminated a significant portion of the accounting profession’s system of ____-regulation.

Answer 146

Sarbanes - Oxley Act eliminated a significant portion of the accounting profession’s system of self-regulation.

Question 147

Sarbanes - Oxley Act ___________ a significant portion of the accounting profession’s ______ of self-regulation.

Answer 147

Sarbanes - Oxley Act eliminated a significant portion of the accounting profession’s system of self-regulation.

Question 148

SOX eliminated a significant portion of the accounting profession’s system of self-__________.

Answer 148

SOX eliminated a significant portion of the accounting profession’s system of self-regulation.

Question 149

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that

the principal executive officer and the principal financial officer ______ as to certain items on each annual or quarterly report:

Answer 149

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that

the principal executive officer and the principal financial officer certify as to certain items on each annual or quarterly report:

Question 150

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that

the ________ executive officer and the principal financial officer certify as to certain items on each annual or quarterly report:

Answer 150

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that

the principal executive officer and the principal financial officer certify as to certain items on each annual or quarterly report:

Question 151

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that

the principal ________ officer and the principal financial officer certify as to certain items on each annual or quarterly report:

Answer 151

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that

the principal executive officer and the principal financial officer certify as to certain items on each annual or quarterly report:

Question 152

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that

the principal executive officer and the principal ________ officer certify as to certain items on each annual or quarterly report:

Answer 152

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that

the principal executive officer and the principal financial officer certify as to certain items on each annual or quarterly report:

Question 153

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that

the principal executive officer and the principal financial officer certify as to certain ______ on each annual or quarterly report:

Answer 153

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that

the principal executive officer and the principal financial officer certify as to certain items on each annual or quarterly report:

Question 154

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that

the principal executive officer and the principal financial officer certify as to certain items on each _______ or quarterly report:

Answer 154

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that

the principal executive officer and the principal financial officer certify as to certain items on each annual or quarterly report:

Question 155

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that

the principal executive officer and the principal financial officer certify as to certain items on each annual or _________ report:

Answer 155

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that

the principal executive officer and the principal financial officer certify as to certain items on each annual or quarterly report:

Question 156

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that

the principal executive officer and the principal financial officer certify as to certain items on each annual or quarterly ______:

Answer 156

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that

the principal executive officer and the principal financial officer certify as to certain items on each annual or quarterly report:

Question 157

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and ________ that

the principal executive officer and the principal financial officer certify as to certain items on each annual or quarterly report:

Answer 157

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that

the principal executive officer and the principal financial officer certify as to certain items on each annual or quarterly report:

Question 158

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive and financial officers certify as to certain items on each annual or quarterly report:

o The signing officer has _________ the report

Answer 158

Sarbanes - Oxley Act issues

• Section 302 is entitled “Corporate Responsibility for Financial Reports” and requires that the principal executive and financial officers certify as to certain items on each annual or quarterly report:

o The signing officer has reviewed the report

Question 159

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o The ________ officer has reviewed the report

Answer 159

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o The signing officer has reviewed the report

Question 160

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o The signing officer has reviewed the _______

Answer 160

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o The signing officer has reviewed the report

Question 161

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s __________, the report does not contain a material untrue statement or omit a material fact

Answer 161

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact

Question 162

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the report does not contain a ________ untrue statement or omit a material fact

Answer 162

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact

Question 163

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the report does not contain a material untrue statement or ____ a material fact

Answer 163

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact

Question 164

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material ____

Answer 164

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact

Question 165

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the ______’s knowledge, the report does not contain a material untrue statement or omit a material fact

Answer 165

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact

Question 166

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the _____ does not contain a material untrue statement or omit a material fact

Answer 166

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact

Question 167

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the report does not contain a material ______ statement or omit a material fact

Answer 167

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the report does not contain a material untrue statement or omit a material fact

Question 168

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s __________, the financial statements and other information are fairly presented

Answer 168

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the financial statements and other information are fairly presented

Question 169

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the ________ statements and other information are fairly presented

Answer 169

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the financial statements and other information are fairly presented

Question 170

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the financial statements and _____ information are fairly presented

Answer 170

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the financial statements and other information are fairly presented

Question 171

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the financial statements and other ____________ are fairly presented

Answer 171

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the financial statements and other information are fairly presented

Question 172

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the financial statements and other information are _____ presented

Answer 172

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the financial statements and other information are fairly presented

Question 173

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the __________________ and other information are fairly presented

Answer 173

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the financial statements and other information are fairly presented

Question 174

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the financial statements and other information are ________________

Answer 174

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Based on the signer’s knowledge, the financial statements and other information are fairly presented

Question 175

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers are ___________ for establishing and maintaining internal controls

Answer 175

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers are responsible for establishing and maintaining internal controls

Question 176

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers are responsible for ___________ and maintaining internal controls

Answer 176

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers are responsible for establishing and maintaining internal controls

Question 177

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers are responsible for establishing and __________ internal controls

Answer 177

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers are responsible for establishing and maintaining internal controls

Question 178

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers are responsible for establishing and maintaining internal __________

Answer 178

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers are responsible for establishing and maintaining internal controls

Question 179

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have _______ those controls to ensure the receipt of all relevant information

Answer 179

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have designed those controls to ensure the receipt of all relevant information

Question 180

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have designed those ________ to ensure the receipt of all relevant information

Answer 180

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have designed those controls to ensure the receipt of all relevant information

Question 181

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have designed those controls to ensure the ______ of all relevant information

Answer 181

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have designed those controls to ensure the receipt of all relevant information

Question 182

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have designed those controls to ensure the receipt of all _______ information

Answer 182

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have designed those controls to ensure the receipt of all relevant information

Question 183

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have designed those controls to ensure the receipt of all relevant information

during those _______ in which periodic reports are being prepared

Answer 183

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have designed those controls to ensure the receipt of all relevant information

during those periods in which periodic reports are being prepared

Question 184

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have designed those controls to ensure the receipt of all relevant information

during those periods in which periodic ______ are being prepared

Answer 184

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have designed those controls to ensure the receipt of all relevant information

during those periods in which periodic reports are being prepared

Question 185

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have designed those controls to ensure the receipt of all relevant information

during those periods in which periodic reports are being ________

Answer 185

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have designed those controls to ensure the receipt of all relevant information

during those periods in which periodic reports are being prepared

Question 186

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have _________ the effectiveness of internal controls within 90 days prior to the report

Answer 186

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have evaluated the effectiveness of internal controls within 90 days prior to the report

Question 187

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have evaluated the ___________ of internal controls within 90 days prior to the report

Answer 187

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have evaluated the effectiveness of internal controls within 90 days prior to the report

Question 188

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have evaluated the effectiveness of internal controls within __ days prior to the report

Answer 188

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have evaluated the effectiveness of internal controls within 90 days prior to the report

Question 189

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have evaluated the effectiveness of internal controls within 90 days ____ to the report

Answer 189

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have evaluated the effectiveness of internal controls within 90 days prior to the report

Question 190

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have evaluated the effectiveness of internal controls _____ 90 days prior to the report

Answer 190

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have evaluated the effectiveness of internal controls within 90 days prior to the report

Question 191

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have evaluated the effectiveness of internal controls within 90 ____ prior to the report

Answer 191

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have evaluated the effectiveness of internal controls within 90 days prior to the report

Question 192

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have presented their _________ about the effectiveness of internal controls in the report

Answer 192

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have presented their conclusions about the effectiveness of internal controls in the report

Question 193

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have presented their conclusions about the ___________ of internal controls in the report

Answer 193

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have presented their conclusions about the effectiveness of internal controls in the report

Question 194

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have presented their conclusions about the effectiveness of internal ________ in the report

Answer 194

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have presented their conclusions about the effectiveness of internal controls in the report

Question 195

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have _________ their conclusions about the effectiveness of internal controls in the report

Answer 195

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have presented their conclusions about the effectiveness of internal controls in the report

Question 196

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have presented their conclusions about the effectiveness of internal controls in the _______

Answer 196

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”

o Signers have presented their conclusions about the effectiveness of internal controls in the report

Question 197

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• ______ are also required to report to auditors and to the audit committee:

Answer 197

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:

Question 198

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to ________ and to the audit committee:

Answer 198

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:

Question 199

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit _________:

Answer 199

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:

Question 200

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:o All _________ deficiencies that could adversely affect the reporting process and any material weaknesses

Answer 200

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:o All significant deficiencies that could adversely affect the reporting process and any material weaknesses

Question 201

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:o ___ significant deficiencies that could adversely affect the reporting process and any material weaknesses

Answer 201

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:o All significant deficiencies that could adversely affect the reporting process and any material weaknesses

Question 202

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:o All significant ___________ that could adversely affect the reporting process and any material weaknesses

Answer 202

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:o All significant deficiencies that could adversely affect the reporting process and any material weaknesses

Question 203

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:o All significant deficiencies that could adversely affect the reporting process and any _________ weaknesses

Answer 203

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:o All significant deficiencies that could adversely affect the reporting process and any material weaknesses

Question 204

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:o All significant deficiencies that could adversely affect the reporting process and any material ____________

Answer 204

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:o All significant deficiencies that could adversely affect the reporting process and any material weaknesses

Question 205

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:o All significant deficiencies that could adversely affect the reporting process and any material weaknesseso ___ fraud (whether material or not) involving management or employees with a role in internal controls

Answer 205

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:o All significant deficiencies that could adversely affect the reporting process and any material weaknesseso Any fraud (whether material or not) involving management or employees with a role in internal controls

Question 206

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:o Any _______ (whether material or not) involving management or employees with a role in internal controls

Answer 206

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:o Any fraud (whether material or not) involving management or employees with a role in internal controls

Question 207

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:o Any fraud (whether material or not) involving ______________ or employees with a role in internal controls

Answer 207

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:o Any fraud (whether material or not) involving management or employees with a role in internal controls

Question 208

Do officers required to report to auditors regarding immaterial fraud involving management or employees with a role in internal controls?

Answer 208

Do officers required to report to auditors regarding immaterial fraud involving management or employees with a role in internal controls?

Yes

Any fraud (whether material or not) involving management or employees with a role in internal controls

Sarbanes - Oxley Act issues

• Section 302 - “Corporate Responsibility for Financial Reports”
• Officers are also required to report to auditors and to the audit committee:o Any fraud (whether material or not) involving management or employees with a role in internal controls

Question 209

Why management would not design a perfect system of internal control?

Answer 209

Why management would not design a perfect system of internal control?

Answer: cost/benefit factor

Even if it were possible to design a perfect system of internal control, management would not do so, since there are costs involved in any action, and the costs of the internal control structure should not exceed the benefits.

Question 210

Why the auditor is required to respond to management override of controls?

– Because management is often in a position to override controls in order to ________ financial-statement ________

Answer 210

Why the auditor is required to respond to management override of controls?

– Because management is often in a position to override controls in order to commit financial-statement fraud,

the standard includes procedures to test for management override of controls on every audit.

Question 211

Even a properly _________ and performed audit may not detect a material misstatement resulting from fraud

Answer 211

Even a properly planned and performed audit may not detect a material misstatement resulting from fraud

Question 212

Even a properly planned and __________ audit may not detect a material misstatement resulting from fraud

Answer 212

Even a properly planned and performed audit may not detect a material misstatement resulting from fraud

Question 213

Even a properly planned and performed audit may ___ detect a material misstatement resulting from fraud

Answer 213

Even a properly planned and performed audit may not detect a material misstatement resulting from fraud

Question 214

Even a properly planned and performed audit may not detect a _________ misstatement resulting from fraud

Answer 214

Even a properly planned and performed audit may not detect a material misstatement resulting from fraud

Question 215

Even a properly planned and performed audit may not detect a material misstatement resulting from _____

Answer 215

Even a properly planned and performed audit may not detect a material misstatement resulting from fraud

Question 216

Even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) ___________ aspects of fraudulent activity, including the fact that fraud often involves collusion or falsified documents, and
(2) the need to apply professional __________ in the identification or evaluation of fraud risk factors and other conditions.

Answer 216

Even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity, including the fact that fraud often involves collusion or falsified documents, and
(2) the need to apply professional judgment in the identification or evaluation of fraud risk factors and other conditions.

Question 217

Even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of _________ activity, including the fact that fraud often involves collusion or falsified documents, and
(2) the need to apply professional judgment in the identification or evaluation of fraud ____ factors and other conditions.

Answer 217

Even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity, including the fact that fraud often involves collusion or falsified documents, and
(2) the need to apply professional judgment in the identification or evaluation of fraud risk factors and other conditions.

Question 218

Even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity, including the fact that fraud often involves _________ or falsified documents, and
(2) the need to apply professional judgment in the identification or evaluation of fraud risk factors and other conditions.

Answer 218

Even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity, including the fact that fraud often involves collusion or falsified documents, and
(2) the need to apply professional judgment in the identification or evaluation of fraud risk factors and other conditions.

Question 219

Even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity, including the fact that fraud often involves collusion or _______ documents, and
(2) the need to apply professional judgment in the identification or evaluation of fraud risk factors and other conditions.

Answer 219

Even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity, including the fact that fraud often involves collusion or falsified documents, and
(2) the need to apply professional judgment in the identification or evaluation of fraud risk factors and other conditions.

Question 220

Even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity, including the fact that fraud often involves collusion or falsified documents, and
(2) the need to apply professional judgment in the _____________ or evaluation of fraud risk factors and other conditions.

Answer 220

Even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity, including the fact that fraud often involves collusion or falsified documents, and
(2) the need to apply professional judgment in the identification or evaluation of fraud risk factors and other conditions.

Question 221

Even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity, including the fact that fraud often involves collusion or falsified documents, and
(2) the need to apply professional judgment in the identification or ___________ of fraud risk factors and other conditions.

Answer 221

Even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity, including the fact that fraud often involves collusion or falsified documents, and
(2) the need to apply professional judgment in the identification or evaluation of fraud risk factors and other conditions.

Question 222

Even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity, including the fact that fraud often involves collusion or falsified documents, and
(2) the need to apply professional judgment in the identification or evaluation of fraud risk factors and other __________ .

Answer 222

Even a properly planned and performed audit may not detect a material misstatement resulting from fraud because of

(1) concealment aspects of fraudulent activity, including the fact that fraud often involves collusion or falsified documents, and
(2) the need to apply professional judgment in the identification or evaluation of fraud risk factors and other conditions.

Question 223

Inherent limitations (COCO)

“Control activities that depend on segregation of duties will not be effective if those engaged in the segregated functions conspire with one another.”

= ?

Answer 223

Inherent limitations (COCO)

• Collusion

– Control activities that depend on segregation of duties will not be effective if those engaged in the segregated functions conspire with one another.

Question 224

Inherent limitations (COCO)

“Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.”

= ?

Answer 224

• Override by management

– Since management designs and implements the system of internal control, it is in a position to override it, so that even an effective internal control structure cannot be expected to prevent intentional misbehavior by management.

This is one of the reasons the auditor must establish the integrity of management before accepting the engagement.

It is also important to establish whether employee personnel have ever been asked to override systems of internal control by management.

Question 225

Inherent limitations (COCO)

“If control procedures are erroneously applied, they will not be effective. Internal control cannot be expected to prevent mistakes in human judgment (misjudgment)”

= ?

Answer 225

• Competence/Human error

– If control procedures are erroneously applied, they will not be effective. Internal control cannot be expected to prevent mistakes in human judgment (misjudgment).

Question 226

Inherent limitations (COCO)

“A good internal control structure may cease to be effective due to changes in the company’s operations or size, changes in technology, or other changes affecting the way the entity’s business is transacted.”

= ?

Answer 226

• Obsolescence

– A good internal control structure may cease to be effective due to changes in the company’s operations or size, changes in technology, or other changes affecting the way the entity’s business is transacted.

Question 227

What is COCO?

• Coll_____
• Ove_________________
• Com___________________
• Ob___________-

Answer 227

What is COCO?

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

Question 228

What is COCO?

• Coll______
• Override by management
• Competence/Human error
• Obsolescence

Answer 228

What is COCO?

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

Question 229

What is COCO?

• Collusion
• Overr_________________
• Competence/Human error
• Obsolescence

Answer 229

What is COCO?

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

Question 230

What is COCO?

• Collusion
• Override by management
• Comp______/Human _____
• Obsolescence

Answer 230

What is COCO?

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

Question 231

What is COCO?

• Collusion
• Override by management
• Competence/Human error
• Obso_________

Answer 231

What is COCO?

• Collusion
• Override by management
• Competence/Human error
• Obsolescence

Question 232

What is COCO?

Answer 232

What is COCO?

• Collusion
• Override by management
• Competence/Human error
• Obsolescence