Which of the following is true of internal control?

A$)$ One of the major purposes of internal control is to ensure that the assets are safeguarded.

B$)$ A company's outside auditor is responsible for the company's internal control system.

C$)$ Internal controls are only necessary for public companies.

D$)$ Internal control procedures tend to diminish the importance of operational efficiency.

Which of the following statements is true of the Sarbanes$-$Oxley Act?

A$)$ Those who commit securities fraud must be sentenced to $10$ years in prison.

B$)$ Accounting firms are allowed to provide both auditing services and a full range of consulting services to their public company clients.

C$)$ All private and foreign companies must issue an internal control report evaluated by an outside auditor.

D$)$ The Public Company Accounting Oversight Board oversees the work of auditors of public companies

At Carlson Services, the cashier collects checks and cash from customers, and the junior accountant records the transactions in the journal. The controller approves the journal entries and bank reconciliations. The treasurer signs checks and approves contracts. Which internal control procedure is exemplified in the above situation?

A$)$ assignment of responsibilities

B$)$ competent, reliable, and ethical personnel

C$)$ separation of duties

D$)$ documents

In reconciling a bank statement, the bank balance is $$1,500,$ and the checkbook balance is $$2,105.$ Which of the following is the most probable reason for the checkbook balance being larger than the bank balance?

A$)$ The bank has not cleared certain outstanding checks.

B$)$ A deposit in transit was made at the end of the month.

C$)$ The bank has added interest revenue to the account balance.

D$)$ The bank received an EFT from a customer.