1. Requires the SEC to pay whistleblowers. 2. Examines whether financial statements are prepared using GAAP; it does not ensure absolute accuracy of the statements. Chapter 1 Accounting in Business 3. Requires documentation and verification of internal controls and increases emphasis on inter- nal control effectiveness. 4. Procedures set up to protect company property and equipment, ensure reliable accounting, promote efficiency, and encourage adherence to policies. 5. A less expensive and more effective means to stop fraud. 6. Three factors push a person to commit fraud: opportunity, pressure, and rationalization. 7. Beliefs that distinguish right from wrong.

The major objectives of control are guard against frauds in data entry/processing check clerical handling of data before it enters a computer to provide a method to trace the steps and find where error has occurred automatically correct errors in data entry/processing   Question 17Answer a. i and iii b.   i,ii, iii, iv   c.   i, ii and iv   d. i, ii, and iii e. i only

Financial audit Q&A What is the file type of the customer confirmation that is related to the outstanding balance the client has?

An element of internal control is   a. risk assessment   b. controlling accounts   c. journals   d. subsidiary ledgers

defines and describes each audit procedure 1. Physical examination 2.Confirmation 3.Inspection 4.Analytical procedures 5. Inquiry/interrogation 6.Recalculation 7.Perform again (reperform) 8.Observation

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Question 7 Z scores are:   A. Used to evaluate the quality of imaged files   B. Used to identify outliers in data   C. A fraud score based on ISO standards   D. Issued by the SEC to identify public companies that are experiencing risk assurance problem           ReplyForward

An audit procedure that involves taking a sample of recorded transactions and obtaining original source documents supporting the recorded transactions is referred to as what? a. vouching b. directional testing c. a walk-through d. tracing

Please use the below format for your submitted answers, using a table or spreadsheet: Response Spreadsheet or Table Format 1. Segregation of II. Subsidiary ledger Duties errors A1. COSO objective A2. Design adequacy or Operational effectiveness A3. Insignificant, Significant, or Material A4. Overall conclusions B1. IA reporting B2. Management reporting III. Untimely reconciliations

Identify three verbal and three nonverbal cues that may be observed when making inquiries of an individual who is being deceitful.