1. Internal control does not encompass:

a) safeguarding of company assets.

b) checking the reliability of accounting information.

c) evaluating the financial success of management.

d) ensuring compliance with management policies.

e) ensuring compliance with government laws.

2. Good internal control procedures include:

a) segregation of duties and enforced variations.

b) limiting access to assets and accounting records.

c) the use of fire-proof vaults and industrial espionage.

d) both 'a' and 'b'

e) both 'b' and 'c'

3. The Sarbanes-Oxley Act:

a) prohibits paying bribes to overseas officials.

b) requires private and public companies to maintain a strong system of internal control.

c) delegates to the Securites and Exchange Commission responsibility for overseeing the work of public company auditors.

d) prohibits auditiors from performing any consulting work for their audit clients.

e) requires that public companies issue and internal control report.

4. In a good system of international control, which functions should be segregated?

a) accounting functions should be separated from operating functions

b) accounting functions should be separated from asset custody functions

c) management functions should be separated from operating functions

d) both 'a' and 'b' above

e) both 'b' and 'c' above