ACTG 313 PREPARATION TEST 2026
QUESTIONS AND CORRECT ANSWERS
GRADED A+
● (Gleim) The primary reason to establish internal control is to:
A. Encourage compliance with organizational objectives.
B. Ensure the accuracy, reliability, and timeliness of information.
C. Provide reasonable assurance that the objectives of the organization
are achieved.
D. Safeguard the resources of the organization.. Answer: C. Provide
reasonable assurance that the objectives of the organization are achieved.
● (Gleim) Which of the following best defines control?
A. Control is provided when cost-effective measures are taken to restrict
deviations to a tolerable level.
B. Controls are statements of what the organization chooses to
accomplish.
C. Control accomplishes objectives and goals in an accurate, timely, and
economical fashion.
, D. Control is the result of proper planning, organizing, and directing by
management.. Answer: A. Control is provided when cost-effective
measures are taken to restrict deviations to a tolerable level.
● (Gleim) Proper segregation of duties reduces the opportunities to
allow persons to be in positions both to
A. Establish internal control and authorize transactions.
B. Record cash receipts and cash disbursements.
C. Perpetrate and conceal fraud and error.
D. Journalize entries and prepare financial statements.. Answer: C.
Perpetrate and conceal fraud and error.
● (Gleim) The Sarbanes-Oxley Act of 2002 (SOX) requires management
of issuers to do all of the following except
A. Provide a report to include a statement of management's
responsibility for and assessment of internal control.
B. Establish and document internal control procedures and to include in
their annual reports a report on the company's internal control over
financial reporting.
C. Provide a statement that the board approves changes in internal
control procedures.
QUESTIONS AND CORRECT ANSWERS
GRADED A+
● (Gleim) The primary reason to establish internal control is to:
A. Encourage compliance with organizational objectives.
B. Ensure the accuracy, reliability, and timeliness of information.
C. Provide reasonable assurance that the objectives of the organization
are achieved.
D. Safeguard the resources of the organization.. Answer: C. Provide
reasonable assurance that the objectives of the organization are achieved.
● (Gleim) Which of the following best defines control?
A. Control is provided when cost-effective measures are taken to restrict
deviations to a tolerable level.
B. Controls are statements of what the organization chooses to
accomplish.
C. Control accomplishes objectives and goals in an accurate, timely, and
economical fashion.
, D. Control is the result of proper planning, organizing, and directing by
management.. Answer: A. Control is provided when cost-effective
measures are taken to restrict deviations to a tolerable level.
● (Gleim) Proper segregation of duties reduces the opportunities to
allow persons to be in positions both to
A. Establish internal control and authorize transactions.
B. Record cash receipts and cash disbursements.
C. Perpetrate and conceal fraud and error.
D. Journalize entries and prepare financial statements.. Answer: C.
Perpetrate and conceal fraud and error.
● (Gleim) The Sarbanes-Oxley Act of 2002 (SOX) requires management
of issuers to do all of the following except
A. Provide a report to include a statement of management's
responsibility for and assessment of internal control.
B. Establish and document internal control procedures and to include in
their annual reports a report on the company's internal control over
financial reporting.
C. Provide a statement that the board approves changes in internal
control procedures.
