Accounting: Chapter 1 Exam
verified solutions and
explanations
ISO 9001:2008 - Correct Answers: A quality-related certification issued by the International Organization
for Standardization (ISO). Firms may become ISO 9001:2008 certified by complying with the quality
management standards set forth by the ISO and undergoing extensive audits for their quality
management purposes.
Chief Financial Officer (CFO) - Correct Answers: The position responsible for all of the company's
financial concerns.
Sarbanes-Oxley Act of 2002 (SOX) - Correct Answers: A congressional act that enhances internal control
and financial reporting requirements and establishes new regulatory requirements for publicly traded
companies and their independent auditors.
Internal Audit Function - Correct Answers: The corporate function charged with assessing the
effectiveness of the company's internal controls and risk management policies.
Just-In-Time (JIT) - Correct Answers: An inventory philosophy first pioneered by Toyota in which a
product is manufactured just in time to fill customer orders. Companies adopting JIT are able to
substantially reduce the quantity of raw materials and finished products kept on hand.
International Financial Reporting Standards (IFRS) - Correct Answers: The SEC is considering whether to
require all publicly traded companies to adopt IFRS. In many instances, IFRS vary from GAAP.
Planning - Correct Answers: One of management's primary responsibilities; setting goals and objectives
for the company and deciding how to achieve them.
American Institute of Certified Public Accountants (AICPA) - Correct Answers: The world's largest
association representing the accounting profession; together with the Chartered Institute of