WGU-C213 Chapter Seven and
Eight questions and answers
Cash Budget - correct answer An important tool in helping management plan its cash needs. This
discussion briefly introduces you to budgeting cash receipts.
Audit Committee - correct answer Members of a company's board of directors who are responsible for
dealing with the external and internal auditors.
Control Activities - correct answer Policies and procedures used by management to meet their
objectives.
Control Environment - correct answer The actions, policies, and procedures that reflect the overall
attitudes of top management about control and its importance to the entity.
Control Procedures - correct answer Policies and procedures used by management to meet their
objectives.
Detective Controls - correct answer Internal control activities that are designed to detect the occurrence
of errors and fraud.
External Auditors - correct answer Independent CPAs who are retained by organizations to perform
audits of financial statements.
GAAP Oval - correct answer A diagram that represents the flexibility a manager has, within GAAP, to
report one earnings number from among many possibilities based on different methods and
assumptions.
Generally Accepted Auditing Standards (GAAS) - correct answer Auditing standards developed by the
PCAOB for public companies and AICPA for private companies.
Eight questions and answers
Cash Budget - correct answer An important tool in helping management plan its cash needs. This
discussion briefly introduces you to budgeting cash receipts.
Audit Committee - correct answer Members of a company's board of directors who are responsible for
dealing with the external and internal auditors.
Control Activities - correct answer Policies and procedures used by management to meet their
objectives.
Control Environment - correct answer The actions, policies, and procedures that reflect the overall
attitudes of top management about control and its importance to the entity.
Control Procedures - correct answer Policies and procedures used by management to meet their
objectives.
Detective Controls - correct answer Internal control activities that are designed to detect the occurrence
of errors and fraud.
External Auditors - correct answer Independent CPAs who are retained by organizations to perform
audits of financial statements.
GAAP Oval - correct answer A diagram that represents the flexibility a manager has, within GAAP, to
report one earnings number from among many possibilities based on different methods and
assumptions.
Generally Accepted Auditing Standards (GAAS) - correct answer Auditing standards developed by the
PCAOB for public companies and AICPA for private companies.
