Question 2(Mandatory)(2.5 points)

The Sarbanes Oxley Act (SOX)....

Question 2 options:

was passed in 2002

was passed in the wake of accounting scandals, to maintain public confidence and trust in corporate financial reporting

applies to all public companies

Emphasizes the importance of internal controls by requiring companies maintain effective internal controls and requiring companies and auditors to report on the internal controls in 10-Ks

all of these options are true

Question 3(2.5 points

There are three objectives of internal controls, which provide assurance that...

(Select all THREE which apply)

Question 3 options:

management eats sushi for lunch every day

business information is accurate

gummy bears are provided free to all employees

employees and managers comply with laws and regulations

assets are safeguarded and used for business purposes

corporate vending machines always offer Diet Coke

Question 4(Mandatory)(2.5 points)

Please checkall fiveof the elements of internal controls.

Question 4 options:

Playing Frisbee

Monitoring

Control Procedures

Control Environment

Required Espresso Machines

Corporate Jet Necessity

Information and Communication

Shredding All Expense Reports

Mandatory 3-hour Lunches

Risk Assessment

Question 5(Mandatory)(2.5 points)

The ultimate objective of risk assessment is to...

Question 5 options:

eliminate ALL risk

maximize risk

all of the provided answers

increase the possibility of a tax audit

none of the provided answers

minimize risk

Section 2: Cash Reconciliation

Question 6(Mandatory)(3.5 points)

As of December 31 the cash account in the ledger of Ellery, Inc. showed a balance of $75,000.The bank statement, however, showed a balance of $100,000 as of the same date.The only reconciling items were deposits in transit of $15,000, interest earned of $225, a bank service charge of $115 and outstanding checks.

______________________________

What was the total value of the outstanding checks?

Question 6 options:

$39,890

$40,340

$39,660

$9,890