Question 1

Significant deficiencies with internal controls do not have to be:

	fixed, but should be disclosed.
	addressed, but should be changed.
	changed, but should be addressed.
	disclosed, but should be addressed.

Question 2

Which Section in Sarbanes-Oxley addresses internal control structure?

	404
	504
	302
	405

Question 3

Section 404 of Sarbanes-Oxley levies duties on both management and outside auditors of public reporting companies.

	True
	False

Question 4

PCAOB stands for:

	Public Company Accounting Options Board
	Private Company Accounting Oversight Board
	Private Company Accounting Options Board
	Public Company Accounting Oversight Board

Question 5

Which costs have not increased for public companies related to implementation of Sarbanes-Oxley?

	Accounting staff salaries
	CEO salaries
	Audit costs

Question 6

Which of the following is not one of the four specific responsibilities that PCAOB Auditing Standard No. 2 levies on company management?

	Accept responsibility for the effectiveness of the company's internal control over financial reporting.
	Evaluate the effectiveness of the company's internal control over financial reporting using suitable control criteria.
	Support its evaluation with sufficient evidence, including documentation.
	Present a written assessment of the effectiveness of the company's internal control over financial reporting as of the end of the company's five most recent fiscal years.

Question 7

The Sarbanes-Oxley Act was created in response to corporate accounting scandals in the early 21st century to reform the accounting industry, particularly in regards to auditing and internal controls.

	True
	False

Question 8

Internal controls can be broken into two categories: 1) those relating to how transactions flow, and 2) those relating to employee integrity.

	True
	False

Question 9

Internal controls, as defined in Sarbanes-Oxley Section 404, are:

	the processes a company implements to prevent theft by employees.
	the processes a company implements to prevent fraternization within departments.
	the processes a company implements to ensure its financial statements comply with GAAP and are free from material misrepresentations and omissions.
	the processes a company implements to ensure its purchasing department gets materials at the lowest price available and does not accept bribes or gifts from vendors.

Question 10

Internal control material weaknesses and related corrective actions must be disclosed in the annual report on Form 10-K.

	True
	False