The Public Company Accounting Oversight Board (PCAOB) was created as a result of which legislation?
Explanation
The creation of the PCAOB was one of the most significant outcomes of the Sarbanes-Oxley Act, establishing a new body to oversee and regulate the auditors of publicly traded companies.
Other questions
According to the textbook, which of the following is NOT one of the three main factors that contribute to fraudulent activity as depicted in the fraud triangle?
The Sarbanes-Oxley Act (SOX) was passed by Congress in response to numerous corporate scandals. What is a key requirement of SOX for all publicly traded U.S. corporations?
Which of the following is NOT one of the five primary components of an internal control system mentioned in the textbook?
Assigning responsibility for a given task to only one person is an application of which principle of internal control?
Having an employee who orders goods also handle the invoice and authorize payment violates which principle of internal control?
The use of prenumbered checks and invoices is an application of which internal control principle?
Having an independent employee reconcile the bank statement is an application of which internal control principle?
Bonding employees who handle cash and requiring them to take vacations are examples of which internal control principle?
Which of the following is NOT a limitation of internal control systems?
A petty cash fund is generally established to:
If a petty cash fund is established for $100, what is the journal entry to record its establishment?
Laird Company's petty cash fund of $100 is replenished when the fund contains $13 cash and receipts for postage $44, freight-out $38, and miscellaneous expenses $5. What is the journal entry for replenishment?
Assume Laird's petty cash custodian has only $12 in cash in the fund plus receipts totaling $87. The fund was established at $100. The entry to replenish the fund would include a:
Which of the following is NOT a control feature of using a bank account?
Deposits recorded by the depositor but not yet recorded by the bank are called:
A check that is not paid by a bank because of insufficient funds in a customer's bank account is called:
In a bank reconciliation, how are outstanding checks handled?
Which of the following would require an adjusting entry on the company's books following a bank reconciliation?
The bank statement for Laird Company shows a balance per bank of $15,907.45. The reconciliation reveals deposits in transit of $2,201.40 and outstanding checks totaling $5,904.00. What is the adjusted cash balance per bank?
Laird Company's bank reconciliation shows that the bank collected a note receivable of $1,000 plus interest of $50, and charged a $15 collection fee. No interest had been previously accrued. What is the journal entry to record this item?
What are cash equivalents?
How should cash restricted for a special purpose be reported on the balance sheet if it is expected to be used within the next year?
Wynn Company has Cash in bank of $42,000, Cash on hand of $12,000, Cash in a plant expansion fund to be used in 3 years of $100,000, and highly liquid investments with maturities of 3 months or less of $34,000. What amount should be reported as 'Cash and cash equivalents'?
Which of the following is a primary objective of internal control?
A cash register tape for Bluestem Industries showed sales of $6,871.50, but the cash on hand was only $6,820.75. Which entry is required?
What is the purpose of a restrictive endorsement on a check, such as 'For Deposit Only'?
The reconciliation of a company's bank account is an example of which internal control principle?
A voucher system is a network of approvals used to enhance internal control over what type of transaction?
If a company has a cash balance per books of $7,284, a bank service charge of $28, and a note collected by the bank for $736 ($700 note plus $36 interest), what is the adjusted cash balance per books?
At a retail store, having a supervisor remove the cash register tape while the clerk who worked the shift has no access to it is an example of which two internal control principles?
A check written by the company for $196 was mistakenly recorded in the company's books as $169. How would this error be treated on the bank reconciliation?
Which of the following items on a bank reconciliation would NOT require an adjusting journal entry by the company?
An electronic funds transfer (EFT) system is a disbursement system that uses wire, telephone, or computers to transfer cash balances. What is a key internal control benefit of using EFTs?
The fraud perpetrated at Centerstone Health, where an employee scanned applications without a sales agent and later added a friend's name to them, was primarily possible due to a lack of which two controls?
What is the primary reason for reporting cash as the first item in the current assets section of the balance sheet?
The 'Anatomy of a Fraud' case involving Maureen Frugali at Colossal Health care, who created fictitious claims, highlights a failure in which control principle?
A company establishes a petty cash fund for $150. Later, it decides to increase the size of the fund to $200. What is the journal entry to record the increase?
Which of the following would appear on a bank reconciliation as a deduction from the balance per books?
What is the primary difference between a petty cash fund and a 'slush fund'?
What does a debit balance in the 'Cash Over and Short' account signify?
A company's unadjusted cash balance per books is $10,000. The bank statement shows a service charge of $25 and an NSF check for $200. What is the adjusted cash balance per books?
The fraud involving Angela Bauer at Aggasiz Construction Company was possible because she had custody of checks and also performed which conflicting duty?
According to the textbook, which of the following is NOT given as a common feature or benefit of entry-level accounting software packages?
What is the reason given for why a cash overage or shortage might occur in handling over-the-counter receipts?
What is the general rule for classifying an investment as a cash equivalent?
A company has a checking account balance of $23,000. It also has an NSF check from a customer for $500, postdated checks from customers totaling $1,000, and $1,500 in its petty cash fund. What amount should the company report as cash on its balance sheet?
Which of these parties is NOT involved in a typical credit card sale transaction like one using Visa or MasterCard?
If a company has a negative balance in its bank account, how should this be reported on the balance sheet?
What is the primary purpose of a bank reconciliation?