Exam 10: Fraud and Internal Control

Which SOX section requires the chief executive officer and the chief financial officer to disclose to the auditors and the audit committee of the board of directors all significant deficiencies in internal controls, which could adversely affect the ability to record, process, summarize, and report financial data and any material weaknesses in internal controls?

The SOX legislation basically requires management of privately held companies must assess and report on the effectiveness of internal controls for financial reporting using a recognized framework.

The accounting profession is self-regulated.

Which SOX section requires the public accounting firm that audits the financial statements of the company to issue an attestation report regarding the effectiveness of the company's internal controls?

What are the objectives of internal control?

Define or explain the five principle the on which the Trust Services framework is based.

Earnings management focuses on managing when revenues and expenses are recorded in order to favorably reflect a company's financial performance in a(n)________.

SOX emphasizes a strong system of internal control as a way of avoiding Enron-sized accounting frauds.

Which audit type requires the auditor to conduct tests of controls to obtain evidence that internal control over financial reporting has operated effectively?

A(n)________ in internal control over financial reporting is defined as a deficiency as such that there is a reasonable possibility that a material misstatement of financial statements will not be prevented or detected in a timely basis.

A(n)________ over financial reporting requires the auditor to conduct tests of controls to obtain evidence that internal control over financial reporting has operated effectively.

Define the two types of SOC 2 reports.

In the COSO Internal Control-Integrated Framework, risk assessment objectives include all of the following EXCEPT

How long does the typical fraud last before being detected?

Internal controls for the accounting system are incomplete without IT controls.

Internal control is a set of policies, procedures, and activities to achieve an enterprise's objectives that are related to what?

Match the internal auditors code of conduct principle with the appropriate definition. -Integrity

Match the privacy principle to the correct -Disclosure to Third Parties definition.

List and describe the principles for establishing an environment to effectively manage fraud risk.

What is SOX?