ACCT 229 Exam 2 – TAMU questions with correct answers

What consists of the policies and procedures necessary to ensure Operations, Reporting, and Compliance Objectives? CORRECT ANSWER Internal Control System What ensures the safeguarding of a company's assets & making sure operations are effective and efficient; Making sure Day-to-Day operations continue uninterrupted? CORRECT ANSWER Operations Objectives What ensures the reliability of accounting records; SOX and GAAP? CORRECT ANSWER Reporting Objectives What ensures compliance with laws & regulations? CORRECT ANSWER Compliance Objectives What are the 5 parts of Internal Controls? CORRECT ANSWER 1. Control Environment 2. Risk Assessment 3. Information and Communication 4. Monitoring 5. Control Activities: Internal Control Procedures Who sets the tone in the Control Environment? CORRECT ANSWER Upper levels of organization, but the tone at the middle of the organization has the biggest day-to-day impact What is evaluating risks and their impact?