ACING MBA 510 FINAL EXAM WITH THE LATEST A+ QUESTIONS
AND ANSWERS STUDY COMPANION.
Internal controls or internal control system
All policies and procedures used to protect assets, ensure reliable accounting, promote
efficient operations, and urge adherence to company policies
-protect assets
-ensure reliable accounting
-promote efficient operations
-uphold company policies
An internal control system is policies and procedures use to:
-prevent avoidable losses
-plan operations
-monitor company and employee performance
Managers use internal control systeims to ___,___ and ____. For example, internal
controls for UHG protect patient records and policy.
Sarbanes-Oxley Act (SOX)
Legislation that created the Public Company Accounting Oversight Board, regulates
analyst conflicts, imposes corporate governance requirements, enhances accounting
and control disclosures, impacts insider transactions and executive loans, establishes
new types of criminal conduct, and expands penalties for violations of federal securities
laws
Sarbanes-Oxley Act (SOX)
Requires managers and auditors of companies whose stock is traded on an exchange
(called public companies) to document and verify internal controls.
The company must have effective internal controls.
Auditors must evaluate internal controls.
Violators receive harsh penalties - up to 25 years in prison with fines.
Auditors' work is overseen by the Public Company Accounting Oversight Board
(PCAOB)
Lis some of the requirements of Sarbanes-Oxley Act (SOX)
, Committee of Sponsoring Organizations (COSO)
joint initiative of five private sector organizations and is dedicated to providing thought
leadership through the development of frameworks and guidance on enterprise risk
management, internal control, and fraud deterrence.
-Control environment
-Risk assessment
-Control activities
-Information & communication
-Monitoring
COSO list five ingredients of internal control that add to the quality of accounting
information.
control environment
company structure, ethics, and integrity for internal control
risk assessment
identify, analyze, and manage risk factors.
control activities
policies and procedures to reduce risk of loss
information & communication
reports to internal and external parties
monitoring
regular review of internal control effectiveness
-establish responsibilities
-maintain adequate records
-insure assets and bond key employees
-separate recordkeeping from custody of assets
-divide responsibility of related transactions
-apply technological controls
-perform regular and independent reviews
Principles of internal control:
collude
agree in secret to commit fraud
AND ANSWERS STUDY COMPANION.
Internal controls or internal control system
All policies and procedures used to protect assets, ensure reliable accounting, promote
efficient operations, and urge adherence to company policies
-protect assets
-ensure reliable accounting
-promote efficient operations
-uphold company policies
An internal control system is policies and procedures use to:
-prevent avoidable losses
-plan operations
-monitor company and employee performance
Managers use internal control systeims to ___,___ and ____. For example, internal
controls for UHG protect patient records and policy.
Sarbanes-Oxley Act (SOX)
Legislation that created the Public Company Accounting Oversight Board, regulates
analyst conflicts, imposes corporate governance requirements, enhances accounting
and control disclosures, impacts insider transactions and executive loans, establishes
new types of criminal conduct, and expands penalties for violations of federal securities
laws
Sarbanes-Oxley Act (SOX)
Requires managers and auditors of companies whose stock is traded on an exchange
(called public companies) to document and verify internal controls.
The company must have effective internal controls.
Auditors must evaluate internal controls.
Violators receive harsh penalties - up to 25 years in prison with fines.
Auditors' work is overseen by the Public Company Accounting Oversight Board
(PCAOB)
Lis some of the requirements of Sarbanes-Oxley Act (SOX)
, Committee of Sponsoring Organizations (COSO)
joint initiative of five private sector organizations and is dedicated to providing thought
leadership through the development of frameworks and guidance on enterprise risk
management, internal control, and fraud deterrence.
-Control environment
-Risk assessment
-Control activities
-Information & communication
-Monitoring
COSO list five ingredients of internal control that add to the quality of accounting
information.
control environment
company structure, ethics, and integrity for internal control
risk assessment
identify, analyze, and manage risk factors.
control activities
policies and procedures to reduce risk of loss
information & communication
reports to internal and external parties
monitoring
regular review of internal control effectiveness
-establish responsibilities
-maintain adequate records
-insure assets and bond key employees
-separate recordkeeping from custody of assets
-divide responsibility of related transactions
-apply technological controls
-perform regular and independent reviews
Principles of internal control:
collude
agree in secret to commit fraud
