MGMT 200 Chapter 4 Exam Questions and Answers Fully Solved Latest Version 2025-2026
The use of one's occupation for personal enrichment through the deliberate misuse or
misapplication of the employer's resources is called occupational - Answers fraud
The Sarbanes-Oxley Act applies to - Answers companies that are required to file with the SEC.
Internal control consists of plans to (Select all that apply.) - Answers provide accurate and
reliable accounting information.
safeguard company assets.
Strong internal control systems allow greater reliance by investors on: - Answers reported
financial statements
The framework for designing an internal control system is provided by the - Answers Committee
of Sponsoring Organizations (COSO) of the Treadway Commission.
When a person intentionally deceives another person or company for personal gain, this is
referred to as _____. - Answers fraud
The Public Company Accounting Reform and Investor Protection Act of 2002 is known as the -
Answers Sarbanes-Oxley Act.
Two types of control activities are - Answers preventive and detective controls.
A company's plans to safeguard company assets and enhance the reliability and accuracy of
accounting information are referred to as - Answers internal controls.
Which of the following allows greater reliance by investors on reported financial statements? -
Answers Strong internal control systems
The Committee of Sponsoring Organizations (COSO) of the Treadway Commission provided a
framework for - Answers designing an internal control system.
The use of one's occupation for personal enrichment through the deliberate misuse or
misapplication of the employer's resources is called occupational _____. - Answers fraud
Separation of duties and E-commerce controls are examples of ______ controls. - Answers
preventive
The two types of control procedures are preventive and _____. - Answers detective
A periodic performance review is an example of a(n) _____ control. - Answers detective
Who is responsible for providing an opinion on management's assessment of internal control? -
Answers The company's auditors
, The accounting term for a situation where two or more people act in coordination to circumvent
internal controls is _____. - Answers collusion
Which of the following are preventive controls? - Answers Separation of duties
Physical controls
Which of the following are detective controls? - Answers Audits
Reconciliations
Performance reviews
Who has final responsibility for internal controls? - Answers Management
When two or more persons work together to circumvent internal control procedures and commit
a fraud, this is called _____. - Answers collusion
The asset that is most susceptible to employee fraud is - Answers cash.
Which of the following items are not included in cash? - Answers Accounts receivable from
customers
Effective internal control over cash requires segregation of duties. Which of the following duties
should be segregated? - Answers Opening the mail and deposit of checks in the bank
Depositing checks into the bank and recording receipts in the accounting records
Lindell sells $100 of goods to a customer. The customer pays with a personal check. Recording
this transaction will include a - Answers debit to Cash.
Which of the following items are included in cash? - Answers Checks from customers
Currency and coins
Balance in checking accounts
Which of the following are internal controls for checks? - Answers Checks for large amounts
should require two signatures.
Checks should be sequentially prenumbered.
Which of the following are common controls over cash receipts? (Select all that apply.) -
Answers opening mail daily and making a detailed list of checks received
having two different employees take custody of the checks and make the deposit
True or false: The entry for a sale to customers is different depending on whether the customer
pays with cash or a check. - Answers False
The use of one's occupation for personal enrichment through the deliberate misuse or
misapplication of the employer's resources is called occupational - Answers fraud
The Sarbanes-Oxley Act applies to - Answers companies that are required to file with the SEC.
Internal control consists of plans to (Select all that apply.) - Answers provide accurate and
reliable accounting information.
safeguard company assets.
Strong internal control systems allow greater reliance by investors on: - Answers reported
financial statements
The framework for designing an internal control system is provided by the - Answers Committee
of Sponsoring Organizations (COSO) of the Treadway Commission.
When a person intentionally deceives another person or company for personal gain, this is
referred to as _____. - Answers fraud
The Public Company Accounting Reform and Investor Protection Act of 2002 is known as the -
Answers Sarbanes-Oxley Act.
Two types of control activities are - Answers preventive and detective controls.
A company's plans to safeguard company assets and enhance the reliability and accuracy of
accounting information are referred to as - Answers internal controls.
Which of the following allows greater reliance by investors on reported financial statements? -
Answers Strong internal control systems
The Committee of Sponsoring Organizations (COSO) of the Treadway Commission provided a
framework for - Answers designing an internal control system.
The use of one's occupation for personal enrichment through the deliberate misuse or
misapplication of the employer's resources is called occupational _____. - Answers fraud
Separation of duties and E-commerce controls are examples of ______ controls. - Answers
preventive
The two types of control procedures are preventive and _____. - Answers detective
A periodic performance review is an example of a(n) _____ control. - Answers detective
Who is responsible for providing an opinion on management's assessment of internal control? -
Answers The company's auditors
, The accounting term for a situation where two or more people act in coordination to circumvent
internal controls is _____. - Answers collusion
Which of the following are preventive controls? - Answers Separation of duties
Physical controls
Which of the following are detective controls? - Answers Audits
Reconciliations
Performance reviews
Who has final responsibility for internal controls? - Answers Management
When two or more persons work together to circumvent internal control procedures and commit
a fraud, this is called _____. - Answers collusion
The asset that is most susceptible to employee fraud is - Answers cash.
Which of the following items are not included in cash? - Answers Accounts receivable from
customers
Effective internal control over cash requires segregation of duties. Which of the following duties
should be segregated? - Answers Opening the mail and deposit of checks in the bank
Depositing checks into the bank and recording receipts in the accounting records
Lindell sells $100 of goods to a customer. The customer pays with a personal check. Recording
this transaction will include a - Answers debit to Cash.
Which of the following items are included in cash? - Answers Checks from customers
Currency and coins
Balance in checking accounts
Which of the following are internal controls for checks? - Answers Checks for large amounts
should require two signatures.
Checks should be sequentially prenumbered.
Which of the following are common controls over cash receipts? (Select all that apply.) -
Answers opening mail daily and making a detailed list of checks received
having two different employees take custody of the checks and make the deposit
True or false: The entry for a sale to customers is different depending on whether the customer
pays with cash or a check. - Answers False
