51.The ratio of cash to monthly cash expenses includes both cash and cash equivalents in the numerator.
a.True
b.False
52.SarbanesOxley applies to
a.publicly held companies
b.notforprofit organizations
c.privately held businesses
d.all of these
53."To maintain public confidence and trust in the financial reporting of companies" is the purpose of
a.the FASB
b.the IRS
c.SarbanesOxley
d.GAAP
54.Which one of the following below is
notan element of internal control?
a.risk assessment
b.monitoring
c.information and communication
d.cost-benefit considerations
55.Which one of the following is
nota factor that influences a business's control environment?
a.management's philosophy and operating style
b.organizational structure
c.proofs and security measures
d.personnel policies
56.When a firm uses internal auditors, it is adhering to which of the following internal control elements?
a.risk assessment
b.monitoring
c.proofs and security measures
d.information and communication
57.The objectives of internal control are to
a.control the internal organization of the accounting department personnel and equipment
b.provide reasonable assurance that assets are safeguarded and used for business purposes, financial reportsare accurate, and laws and regulations are complied with
c.prevent fraud, and promote the social interest of the company
d.provide control over "internal-use only" reports and employee internal conduct
58.Which one of the following reflects a weak internal control system?
a.all employees are well supervised
b.a single employee is responsible for comparing a receiving report to an invoice
c.all employees must take their vacations
d.a single employee is responsible for collecting and recording of cash
59.Internal control does
notconsist of policies and procedures that
a.protect assets from misuse
b.ensure employees and managers comply with laws and regulations
c.guarantee the company will earn a profit
d.ensure that business information is accurate
60.A firm's internal control environment is
notinfluenced by
a.management's operating style
b.organizational structure
c.personnel policies
d.monitoring policies