ACC 231 ASU EXAM 2 WOLFE QUESTIONS AND ANSWERS

ACC 231 ASU EXAM 2 LATEST
WOLFE
Securities and Exchange Commission (SEC) - ANSWERS--approves the
standards FASB and U.S. GAAP set
-governs the U.S. stock exchange
-main goal is to protect investors


Internal Control - ANSWERS--plan to safeguard assets
-helps companies operate efficiently/effectively
-improves the accuracy and reliability of financial reporting and
compliance with accounting laws


Elements of Internal Control - ANSWERS--Control environment
-Risk assessment
-Control activities
-Information and communication to employees
-Monitored for weaknesses


Control Environment - ANSWERS--the set of standards, processes, and
structures that help carrying out internal control across the organization
-reflects attitudes of management and sets the tone for the firm
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, ACC 231 ASU EXAM 2 LATEST
WOLFE

Risk Assessment - ANSWERS-a process that identifies and analyzes
potenetial risks and takes steps to reduce them from occurring


Examples of Control Activities - ANSWERS--Proper training and
supervision
-Separation of duties
-Mandatory vacations
-Restricted access to assets
-Adequate documentation
-Proper authorization


Limitations to Internal Controls - ANSWERS--Collusion
-Small staff size
-Management overrides
-Poor design of controls


Fraud - ANSWERS-deception for personal gain


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