ACG 2023- FINAL EXAM REVIEW QUESTIONS WITH CORRECT ANSWERS

Under which of the following do computer programs that limit unauthorized access to certain files fall? CORRECT ANSWER physical controls Which of the following is an effective internal control over cash disbursements? CORRECT ANSWER -The use of pre-numbered checks -The storage of blank checks in a secure place -The separation of authorization of checks and the actual writing of the checks When preparing a bank reconciliation, how are deposits in transit handled? CORRECT ANSWER added to the bank balance Handy Inc. permits only designated personnel such as cashiers to handle cash receipts. What principle is being applied? CORRECT ANSWER establishment of responsibility During a given year, several parties examine the financial records of ABC Company. These parties include internal auditors, independent auditors, and Internal Revenue Service agents. Which of these parties are considered employees of ABC Company? CORRECT ANSWER internal auditors Which of the following will not require an adjusting entry as a result of a bank reconciliation? CORRECT ANSWER deposits in transit Which of the following is not a reason why an organization establishes a system for internal control? CORRECT ANSWER to eliminate the need for an independent auditor Which one of the following is not a physical control? CORRECT ANSWER independent bank reconciliation Which of the following is not a principle of internal control? CORRECT ANSWER collusion between employees For which item below might a bank issue a credit memorandum to a depositor's account? CORRECT ANSWER interest earned Which of the following was not a result of the Sarbanes-Oxley Act? CORRECT ANSWER Companies must file financial statements with the Internal Revenue Serv