11) Which of the following statements is true of the Sarbanes-Oxley Act? The Public Company Accounting Oversight Board oversees the work cf A) B) Accounting firms are allowed to provide both auditing services and a C) All private and foreign companies must issue an internal control report D) Those who commit securities fraud must be sentenced to 10 years in auditors of public companies. range of consulting services to their public company clients. evaluated by an outside auditor. prison. full 12) Two or more people working together to circumvent internal controls and 12) defraud a company is known as A) separation of duties C) firewall B) collusion D) encryption 13) Which one of the following is true of the bank reconciliation? 13)_ A) It is a financial statement B) It guarantees that no errors have been made. C) It should not be prepared by an employee who handles cash transactions D) It is prepared in place of the cash ledger. 14) A check for which a maker’s bank account has inadequate money to pay the 14) check is known as A) restrictive check C) canceled check B) outstanding check D) nonsufficient funds check 15) The following information is needed to reconcile the cash balance for Johnson 15) Catering Services. A deposit of $5,800 is in transit. Outstanding checks total $1,100 The book balance is $6,000 at February 28, 2017. The bookkeeper recorded a $1,700 check as $17.300 in payment of the * current month’s rent ” The bank balance at February 28, 2017 was $17,230 *A deposit of $400 was credited by the bank for $4,000. * A customer’s check for $3,200 was returned for nonsufficient funds. The bank service charge is $70. What was the adjusted book balance? A) $18,330 B) $18,470 C) $18,400 D) $17,300
11) Which of the following statements is true of the Sarbanes-Oxley Act? The Public Company Accounting Oversight Board oversees the work cf A) B) Accounting firms are allowed to provide both auditing services and a C) All private and foreign companies must issue an internal control report D) Those who commit securities fraud must be sentenced to 10 years in auditors of public companies. range of consulting services to their public company clients. evaluated by an outside auditor. prison. full 12) Two or more people working together to circumvent internal controls and 12) defraud a company is known as A) separation of duties C) firewall B) collusion D) encryption 13) Which one of the following is true of the bank reconciliation? 13)_ A) It is a financial statement B) It guarantees that no errors have been made. C) It should not be prepared by an employee who handles cash transactions D) It is prepared in place of the cash ledger. 14) A check for which a maker’s bank account has inadequate money to pay the 14) check is known as A) restrictive check C) canceled check B) outstanding check D) nonsufficient funds check 15) The following information is needed to reconcile the cash balance for Johnson 15) Catering Services. A deposit of $5,800 is in transit. Outstanding checks total $1,100 The book balance is $6,000 at February 28, 2017. The bookkeeper recorded a $1,700 check as $17.300 in payment of the * current month’s rent ” The bank balance at February 28, 2017 was $17,230 *A deposit of $400 was credited by the bank for $4,000. * A customer’s check for $3,200 was returned for nonsufficient funds. The bank service charge is $70. What was the adjusted book balance? A) $18,330 B) $18,470 C) $18,400 D) $17,300
Answer
Answer 11
A) The Public Company Accounting Oversight Board oversees the
work of Auditors of Public companies
As
As Per the provision of SOX a Five member PCAOB a non profit
corporation is constituted to oversee the work of Auditors of
Public companies. It works under SEC
Answer 12
B) Collusion
when two or more employees joins to gather to compromise the
internal control for some undue favour
Answer 13
C) It should not be prepared by an employee who handles cash
transactions
BRS should not be prepared by the employee who handles cash as
part of internal control otherwise the purpose may be
compromised.
Answer 14
D) Nonsufficient fund checks
These are the checks which are returned by the bank as
sufficient balance is not available for payment
Answer 15 The adjusted book balance will be
A) $18330
Calculated as
Book balance at February 28, 2017 = $6000
Add: Error by Book keeper in recording check of $1700 as $17300
= $15600
Less: Customer check returned NSF = ($3200)
Less: Bank Charges = ($70)
Adjusted book balance
will be = $18330
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