13) Which of the following is a requirement of the Sarbanes-Oxley Act? A) An outside auditor must evaluate the client's internal controls and report on the internal controls as part of the audit report. B) The Public Company Accounting Oversight Board must conduct audits of public companies. C) The accounting firm that audits a public client must also provide consulting services for the same client. D) The Public Company Accounting Oversight Board must create new accounting standards. 14) Which of the following describes the environment in internal control? A) Internal auditors monitor company controls to safeguard assets, and external auditors monitor the controls to ensure that the accounting records are accurate. B) The environment is the "tone at the top" of the business. C) The environment is designed to ensure that the business earns profit D) A company must identify its risks. 15) Which of the following illustrates the internal control procedureseparation of duties? A) Cashiers must not have access to accounting records. B) External auditors will monitor internal controls C) Electronic devices must be installed to reduce theft. D) The invoices and other documents must be pre-numbered. 16) At Radiant Company, the sales department is also responsible for recording cash transactions as it does not have a separate accounting department. Which internal control procedure needs strengthening? A) assignment of responsibilities B) competent, reliable, and ethical personnel C) separation of duties D) documents 17) Electronic funds transfers A) are more expensive than mailing a check to make a payment B) are a way of moving cash by paper documents C) include direct deposits and debit card transactions D) do not appear on the bank statement 18) The bank statement reveals an EFT received from a customer that has not yet been recorded in the journal. How would this information be included on the bank reconciliation? A) an addition on the bank side B) a deduction on the bank side C) a deduction on the book side D) an addition on the book side 18) A check of $300,000, deposited company, was returned to the bank for nonsufficient funds. How would this information be included on the bank reconciliation? A) a deduction on the bank side B) an addition on the bank side C) an addition on the book side D) a deduction on the book side