Managerial Accounting: Creating Value in a Dynamic Business Environment
12th Edition
ISBN: 9781260417074
Author: HILTON, Ronald
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter I, Problem 12E
To determine
Explain the implications of SOX section 302 and 404 for the company’s internal control issues.
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1.What is management's responsibilities for reporting internal control under Section 404 Sarbanes Oxley Act
_____, which constitute one of the most important elements of internal control, include separating responsibilities for related operations.
Control procedures
Risk assessment activities
Information and communication activities
Risk monitoring procedures
Section 404 requires management to make a statement identifying the control framework used to conduct their assessment of internal controls. Discuss the options in selecting a control framework.
Chapter I Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
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Similar questions
- Which one of the following is not included in the control environment? Question 17Answer a. Organizational Structure b. Integrity & Ethical values c. Competence of Personnel d. External Auditorarrow_forwardWhich of the following i not an element of internal control?A. Control environmentB. MonitoringC. Compliance with laws and regulationsD. Control proceduresarrow_forwardIdentify each of the following as a (a) purpose of an internal control system, (b) principle of internalcontrol,or (c) limitation of internal control. Uphold company policiesarrow_forward
- Discuss 2 similarities and differences of internal controls reporting requirements between public and private organizations. Give 2 examples of the challenges you have experienced in internal controls reporting in your previous organization. How have you been able to address them?arrow_forwardWhich one of the following is not included in the control environment? a. Integrity & Ethical values b. Organizational Structure c. Competence of Personnel d. External Auditorarrow_forwardWhat are the responsibilities of management described in Section 404 of the Sarbanes-Oxley Act?arrow_forward
- Describe in detail with relevant examples about the limitations of internal control and Explain about five components of internal controlarrow_forwardWhy are companies required to use IFRS 16 and not IAS 17? A critical analysis and few examples will be welcomearrow_forwardDiscuss limitations to establishing the system of internal controls at organization.arrow_forward
- Explain one of the principles of Internal Control Activities. Please explain in detailarrow_forwardThe following is a list of 12 control plans from Chapter 8. These are followed by a list of 10 B/AR/CR business process controls or deficiencies. Match the 10 B/AR/CR business process control plans with a pervasive control plan from Chapter 8 that could prevent the deficiencies noted in the preceding list or have an impact on the successful execution of the business process control. Explain the impact that the pervasive control could have. Control Plans from Chapter 8 Access control software (i.e., assignment of access rights to employees) Selection, hiring, and supervision of billing clerks to ensure that they can and do carry out their assigned responsibilities Physical controls for perimeter, building, and computer facilities to prevent loss or destruction of the computer resources Preventive maintenance of computer hardware to ensure reliability and availability Systems development life cycle (SDLC), including testing and approval before implementation of new or revised programs…arrow_forward
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