ACG 2021- Final Exam Review
Questions with Complete Solutions
Which category includes computer programs designed to prevent unauthorized access to certain
files?
✔✔physical safeguards
What internal control measures are effective for managing cash outflows?
✔✔-Utilizing checks with sequential numbers
-Keeping blank checks in a secure location
-Dividing the responsibility for authorizing and writing checks
When reconciling a bank statement, how should deposits that have not yet been recorded by the
bank be treated?
✔✔added to the bank’s reported balance
What principle is applied when only specific employees, such as cashiers, are authorized to
handle cash receipts?
✔✔assignment of responsibility
1
,During a financial review, multiple parties, including internal auditors, external auditors, and IRS
representatives, examine ABC Company’s records. Which group consists of ABC Company
employees?
✔✔internal auditors
What item does not require an adjusting entry when reconciling a bank statement?
✔✔deposits that are in transit
Why might an organization implement an internal control system?
✔✔to eliminate the necessity for an external auditor
Which of the following is not considered a physical safeguard?
✔✔independent reconciliation of bank statements
Which factor is not part of internal control principles?
✔✔collaboration among employees
2
, Under what circumstance might a bank issue a credit adjustment to a depositor's account?
✔✔earned interest
Which of the following was not a requirement established by the Sarbanes-Oxley Act?
✔✔Companies must submit financial reports to the IRS.
What is not a component of the fraud triangle?
✔✔collaboration
What is a fundamental element of an internal control framework?
✔✔ongoing monitoring
Which statement is accurate about the bank reconciliation process?
✔✔Deposits in transit are added to the bank's balance, while outstanding checks are subtracted
from the bank's balance.
Which element is part of the fraud triangle?
✔✔financial stress
3
Questions with Complete Solutions
Which category includes computer programs designed to prevent unauthorized access to certain
files?
✔✔physical safeguards
What internal control measures are effective for managing cash outflows?
✔✔-Utilizing checks with sequential numbers
-Keeping blank checks in a secure location
-Dividing the responsibility for authorizing and writing checks
When reconciling a bank statement, how should deposits that have not yet been recorded by the
bank be treated?
✔✔added to the bank’s reported balance
What principle is applied when only specific employees, such as cashiers, are authorized to
handle cash receipts?
✔✔assignment of responsibility
1
,During a financial review, multiple parties, including internal auditors, external auditors, and IRS
representatives, examine ABC Company’s records. Which group consists of ABC Company
employees?
✔✔internal auditors
What item does not require an adjusting entry when reconciling a bank statement?
✔✔deposits that are in transit
Why might an organization implement an internal control system?
✔✔to eliminate the necessity for an external auditor
Which of the following is not considered a physical safeguard?
✔✔independent reconciliation of bank statements
Which factor is not part of internal control principles?
✔✔collaboration among employees
2
, Under what circumstance might a bank issue a credit adjustment to a depositor's account?
✔✔earned interest
Which of the following was not a requirement established by the Sarbanes-Oxley Act?
✔✔Companies must submit financial reports to the IRS.
What is not a component of the fraud triangle?
✔✔collaboration
What is a fundamental element of an internal control framework?
✔✔ongoing monitoring
Which statement is accurate about the bank reconciliation process?
✔✔Deposits in transit are added to the bank's balance, while outstanding checks are subtracted
from the bank's balance.
Which element is part of the fraud triangle?
✔✔financial stress
3
