The components of internal control areMultiple choice question.required by the SEC.based on the ethical tone set by management.required by the American institute of Certified Public Accountants.required by state law.

All of the following requirements about internal controls were enacted under the Sarbanes Oxley Act exceptGroup of answer choicescompanies must develop sound internal controls over financial reporting.companies must continually assess the functionality of internal controls.independent outside auditors must attest to the level of internal control.independent outside auditors must eliminate redundant internal controls.

When duties cannot be segregated, the most important internal control procedure isSelect one:a.independent verificationb.supervisionc.accounting recordsd.access controls

Question 9Which of the following is correct with regard to internal controls.1 pointThe fraud triangle inherently assumes no internalcontrolsThe fraud scale inherently assumes no internalcontrolsThe triangle of fraud action inherently assumes nointernal controlsSegregation of duties is most likely the most important internalcontrol

Internal controls are concerned withGroup of answer choicesonly manual systems of accounting.the extent of government regulations.safeguarding assets.preparing income tax returns.

A good internal control system would require that the employee who handles cash must not be involved inMultiple choice question.the accounts payable function.daily operations of the company.reconciling the bank statement.hiring decisions.