Study Unit 13: Internal Controls -- Corporate Governance
13: (102) Internal Controls -- Corporate Governance
1: (26) Corporate Governance and Regulations Relating to Internal Control
2: (44) Risk and Internal Control
3: (32) Internal Auditing ﻣﻠﻐﺎﻩ ﻋﻥ ﻁﺭﻳﻖ ﻣﻌﻬﺩ ﺍﻝIMA
Subunit 1: Corporate Governance and Regulations Relating to Internal
Control
Question: 1The requirement of the Foreign Corrupt Practices Act of 1977 to devise and maintain adequate
internal control is assigned in the act to the
A. Chief financial officer.
B. Board of directors.
C. Director of internal auditing.
D. Company as a whole with no designation of specific persons or positions.
Question: 2The Sarbanes-Oxley Act has strengthened auditor independence by requiring that management
A. Engage auditors to report in accordance with the Foreign Corrupt Practices Act.
B. Report the nature of disagreements with former auditors.
C. Select auditors through audit committees.
D. Hire a different CPA firm from the one that performs the audit to perform the company’s tax work.
Question: 3A major impact of the Foreign Corrupt Practices Act of 1977 is that registrants subject to the
Securities Exchange Act of 1934 are now required to
A. Keep records that reflect the transactions and dispositions of assets and to maintain a system of internal
accounting controls.
B. Provide access to records by authorized agencies of the federal government.
C. Prepare financial statements in accord with international accounting standards.
D. Produce full, fair, and accurate periodic reports on foreign commerce and/or foreign political party
affiliations.
ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ
https://t.me/CMA_part1 https://t.me/CMA_part2
, Question: 4Section 201 of the Sarbanes-Oxley Act of 2002 prohibits audit firms from performing certain
engagements for audit clients. Which of the following services is permitted under Section 201?
A. Preparation of tax returns.
B. Bookkeeping services.
C. Internal auditing outsourcing.
D. Actuarial services.
Question: 5Section 404 of the Sarbanes-Oxley Act of 2002 requires management of publicly traded corporations
to do all of the following except
A. Establish and document internal control procedures and to include in their annual reports a report on the
company’s internal control over financial reporting.
B. Provide a report to include a statement of management’s responsibility for internal control and of
management’s assessment of the effectiveness of internal control as of the end of the company’s most
recent fiscal year.
C. Provide an identification of the framework used to evaluate the effectiveness of internal control and a
statement that the external auditor has issued an attestation report on management’s assessment.
D. Provide a statement that the audit committee approves the choice of accounting policies and practices.
Question: 6What law prohibits U.S. companies from paying bribes to foreign officials for the purpose of
obtaining or retaining business?
A. Federal Ethical Standards Act.
B. Robinson-Patman Act.
C. Foreign Corrupt Practices Act.
D. North American Free Trade Agreement.
Question: 7Which of the following is not an aspect of the Foreign Corrupt Practices Act of 1977?
A. It subjects management to fines and imprisonment.
B. It prohibits bribes to foreign officials.
C. It requires the establishment of independent audit committees.
ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ
https://t.me/CMA_part1 https://t.me/CMA_part2
, D. It requires an internal control system to be developed and maintained.
Question: 8Which of the following corporations are subject to the accounting requirements of the Foreign
Corrupt Practices Act (FCPA)?
A. All corporations engaged in interstate commerce.
B. All domestic corporations engaged in international trade.
C. All corporations that have made a public offering under the Securities Act of 1933.
D. All corporations whose securities are registered pursuant to the Securities Exchange Act of 1934.
Question: 9The Foreign Corrupt Practices Act of 1977 prohibits bribery of foreign officials. Which of the
following statements correctly describes the act’s application to corporations engaging in such practices?
A. It applies only to multinational corporations.
B. It applies to all domestic corporations engaged in interstate commerce.
C. It applies only to corporations whose securities are registered under the Securities Exchange Act of 1934.
D. It applies only to corporations engaged in foreign commerce.
Question: 10Under the Foreign Corrupt Practices Act (FCPA), an action may be brought that seeks
A. Treble damages by a private party.
B. Injunctive relief by a private party.
C. Criminal sanctions against both the corporation and its officers by the Department of Justice.
D. Damages and injunctive relief by the Securities and Exchange Commission.
ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ
https://t.me/CMA_part1 https://t.me/CMA_part2
13: (102) Internal Controls -- Corporate Governance
1: (26) Corporate Governance and Regulations Relating to Internal Control
2: (44) Risk and Internal Control
3: (32) Internal Auditing ﻣﻠﻐﺎﻩ ﻋﻥ ﻁﺭﻳﻖ ﻣﻌﻬﺩ ﺍﻝIMA
Subunit 1: Corporate Governance and Regulations Relating to Internal
Control
Question: 1The requirement of the Foreign Corrupt Practices Act of 1977 to devise and maintain adequate
internal control is assigned in the act to the
A. Chief financial officer.
B. Board of directors.
C. Director of internal auditing.
D. Company as a whole with no designation of specific persons or positions.
Question: 2The Sarbanes-Oxley Act has strengthened auditor independence by requiring that management
A. Engage auditors to report in accordance with the Foreign Corrupt Practices Act.
B. Report the nature of disagreements with former auditors.
C. Select auditors through audit committees.
D. Hire a different CPA firm from the one that performs the audit to perform the company’s tax work.
Question: 3A major impact of the Foreign Corrupt Practices Act of 1977 is that registrants subject to the
Securities Exchange Act of 1934 are now required to
A. Keep records that reflect the transactions and dispositions of assets and to maintain a system of internal
accounting controls.
B. Provide access to records by authorized agencies of the federal government.
C. Prepare financial statements in accord with international accounting standards.
D. Produce full, fair, and accurate periodic reports on foreign commerce and/or foreign political party
affiliations.
ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ
https://t.me/CMA_part1 https://t.me/CMA_part2
, Question: 4Section 201 of the Sarbanes-Oxley Act of 2002 prohibits audit firms from performing certain
engagements for audit clients. Which of the following services is permitted under Section 201?
A. Preparation of tax returns.
B. Bookkeeping services.
C. Internal auditing outsourcing.
D. Actuarial services.
Question: 5Section 404 of the Sarbanes-Oxley Act of 2002 requires management of publicly traded corporations
to do all of the following except
A. Establish and document internal control procedures and to include in their annual reports a report on the
company’s internal control over financial reporting.
B. Provide a report to include a statement of management’s responsibility for internal control and of
management’s assessment of the effectiveness of internal control as of the end of the company’s most
recent fiscal year.
C. Provide an identification of the framework used to evaluate the effectiveness of internal control and a
statement that the external auditor has issued an attestation report on management’s assessment.
D. Provide a statement that the audit committee approves the choice of accounting policies and practices.
Question: 6What law prohibits U.S. companies from paying bribes to foreign officials for the purpose of
obtaining or retaining business?
A. Federal Ethical Standards Act.
B. Robinson-Patman Act.
C. Foreign Corrupt Practices Act.
D. North American Free Trade Agreement.
Question: 7Which of the following is not an aspect of the Foreign Corrupt Practices Act of 1977?
A. It subjects management to fines and imprisonment.
B. It prohibits bribes to foreign officials.
C. It requires the establishment of independent audit committees.
ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ
https://t.me/CMA_part1 https://t.me/CMA_part2
, D. It requires an internal control system to be developed and maintained.
Question: 8Which of the following corporations are subject to the accounting requirements of the Foreign
Corrupt Practices Act (FCPA)?
A. All corporations engaged in interstate commerce.
B. All domestic corporations engaged in international trade.
C. All corporations that have made a public offering under the Securities Act of 1933.
D. All corporations whose securities are registered pursuant to the Securities Exchange Act of 1934.
Question: 9The Foreign Corrupt Practices Act of 1977 prohibits bribery of foreign officials. Which of the
following statements correctly describes the act’s application to corporations engaging in such practices?
A. It applies only to multinational corporations.
B. It applies to all domestic corporations engaged in interstate commerce.
C. It applies only to corporations whose securities are registered under the Securities Exchange Act of 1934.
D. It applies only to corporations engaged in foreign commerce.
Question: 10Under the Foreign Corrupt Practices Act (FCPA), an action may be brought that seeks
A. Treble damages by a private party.
B. Injunctive relief by a private party.
C. Criminal sanctions against both the corporation and its officers by the Department of Justice.
D. Damages and injunctive relief by the Securities and Exchange Commission.
ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ
https://t.me/CMA_part1 https://t.me/CMA_part2
