116.Indicate whether each of the following statements regarding internal controls is true or false._____ a) The Sarbanes-Oxley Act of 2002 requires public companies to evaluate their internal controls...

116.Indicate whether each of the following statements regarding internal controls is true or false.


_____ a) The Sarbanes-Oxley Act of 2002 requires public companies to evaluate their internal controls and report those findings with SEC filings.
_____ b) The Sarbanes-Oxley Act applies to all companies, while the Enterprise Risk Management (ERM) framework is used by public companies only.
_____ c) Enterprise Risk Management (ERM) is an expansion of the earlier framework of the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
_____ d) The COSO framework includes five interrelated components: separation of duties, quality employees, prenumbered documents, physical controls, and performance evaluations.
_____ e) Congress passed the Sarbanes-Oxley Act in 2002 in response to high profile fraud cases such as Enron and WorldCom.

117.Indicate whether each of the following statements regarding internal controls is true or false.


_____ a) Cash receipts should be deposited in a bank when they reach a predetermined level of materiality.
_____ b) To improve operating efficiency, a company should make most of its disbursements in currency instead of checks.
_____ c) Supporting documents are required when checks are presented to the check signer.
_____ d) Supporting documents should not be marked "paid" until the check clears the bank.
_____ e) All spoiled and voided checks should be defaced and retained.