ACCT 401 - Chapter 7 Quiz fully
solved & updated
Which of the following statements is correct concerning the
understanding of internal control needed by auditors?
A. The auditors must understand the control environment, risk
assessment, and all control activities.
B. The auditors must have a sufficient understanding to assess the
risks of material misstatement.
C. The auditors must understand the information system, not the
accounting system.
D. The auditors must understand monitoring and all preliminary
accounting controls. - answer B. The auditors must have a sufficient
understanding to assess the risks of material misstatement.
The internal control provisions of the Sarbanes-Oxley Act of 2002
apply to which companies in the United States?
A. SEC registrants.
B. All nonpublic companies.
C. All companies.
D. Only those companies included in the Fortune 500. - answer A.
SEC registrants
Which of the following is correct with respect to control deficiencies
discovered during an audit?
A. All such matters must be communicated to the audit committee
and regulatory agencies.
B. Auditors must communicate and recommend corrections relating
to all material weaknesses in internal control to management.
solved & updated
Which of the following statements is correct concerning the
understanding of internal control needed by auditors?
A. The auditors must understand the control environment, risk
assessment, and all control activities.
B. The auditors must have a sufficient understanding to assess the
risks of material misstatement.
C. The auditors must understand the information system, not the
accounting system.
D. The auditors must understand monitoring and all preliminary
accounting controls. - answer B. The auditors must have a sufficient
understanding to assess the risks of material misstatement.
The internal control provisions of the Sarbanes-Oxley Act of 2002
apply to which companies in the United States?
A. SEC registrants.
B. All nonpublic companies.
C. All companies.
D. Only those companies included in the Fortune 500. - answer A.
SEC registrants
Which of the following is correct with respect to control deficiencies
discovered during an audit?
A. All such matters must be communicated to the audit committee
and regulatory agencies.
B. Auditors must communicate and recommend corrections relating
to all material weaknesses in internal control to management.
