2. Sarbanes-Oxley’s purpose is to improve financial reporting.
3. There are two internal control objectives and they are to ensure accurate financial reports, and ensure compliance with applicable laws.
4. Sarbanes-Oxley requires companies to maintain strong and effective internal controls and thus prevent fraud and misleading financial statements.
5. The Sarbanes-Oxley Act requires that financial statements of all public companies report on management's conclusions about the effectiveness of the company's internal control procedures.
6. The control environment in an internal control structure is the attitude and awareness of internal control by all employees.
7. Separating the responsibilities for purchasing, receiving, and paying for equipment is an example of the control procedure: separating operations, custody of assets, and accounting.
8. Internal control is enhanced by separating the control of a transaction from the record-keeping function.
9. A backlog in recording transactions is an example of a warning sign from the accounting system.
10. Money orders are considered cash.