The purpose of the Sarbanes$-$Oxley Act of $2002$ is to:

Question $1$ options:

A$)$

restore public confidence and trust in the financial statements of publicly held companies.

B$)$

require all companies to prepare financial statements.

C$)$

protect companies from demands of investors, stockholders, and creditors.

D$)$

do all of these.

Question $2(5$ points$)$

Saved

Which of the following reflects a weak internal control system?

Question $2$ options:

A$)$

A single employee is responsible for comparing a receiving report to an invoice.

B$)$

All employees must take their vacations.

C$)$

A single employee is responsible for the collecting and recording of cash.

D$)$

All employees are well supervised.

Question $3(5$ points$)$

Saved

An element of internal control is:

Question $3$ options:

A$)$

journals.

B$)$

controlling accounts.

C$)$

subsidiary ledgers.

D$)$

risk assessment.

Question $4(5$ points$)$

Saved

When a firm uses internal auditors, it is adhering to which of the following internal control elements?

Question $4$ options:

A$)$

Risk assessment

B$)$

Control procedures

C$)$

Information and communication

D$)$

Monitoring

Question $5(5$ points$)$

A bank reconciliation should be prepared periodically because:

Question $5$ options:

A$)$

the bank has not recorded all of its transactions.

B$)$

the depositor's records and the bank's records are in agreement.

C$)$

the bank must make sure that its records are correct.

D$)$

any differences between the depositor's records and the bank's records should be determined, and any errors made by either party should be discovered and corrected.

Question $6(5$ points$)$

Accompanying the bank statement was a debit memorandum for bank service charges. What adjustment is required in the depositor's accounts?

Question $6$ options:

A$)$

Decrease Accounts Payable; decrease Cash

B$)$

Increase Miscellaneous Expense; decrease Cash

C$)$

Increase Cash; increase Other Income

D$)$

Increase Cash; increase Accounts Payable

Question $7(5$ points$)$

A special cash fund used to make small payments that occur frequently is called a$($n$)$:

Question $7$ options:

A$)$

operating expenses fund.

B$)$

change fund.

C$)$

market fund.

D$)$

petty cash fund.

Question $8(5$ points$)$

Which of the following is a factor influencing about internal control environment?

Question $8$ options:

A$)$

management's operating style.

B$)$

security measures.

C$)$

organizational behavior.

D$)$

mandatory vacations.