Question 27 of 40

2.5 Points

• Which of the following is NOT an element of internal control over financial reporting?
• A.Maintaining accurate financial records
• B.Providing reasonable assurance that receipts and expenditures are recorded based on proper authorization by management
• C.Developing a code of conduct and whistle-blowing procedures
• D.Providing reasonable assurance that the financial statements are prepared in accordance with generally accepted accounting principles

Question 28 of 40

2.5 Points

• Each of the following is an element of agency costs except:
• A.The costs incurred in monitoring managerial performance
• B.The costs incurred because there is information symmetry between the corporation and outsiders
• C.The costs incurred because insiders know more about a company than do outsiders
• D.The costs incurred in developing internal controls over financial reporting