SLO-5.2. The act enacted to improve corporate accountability and financial reporting is the OFinancial Services Modernization Act OSecurities Investor Protection Act OSarbanes-Oxley Act OSecurities Exchange Act

SLO-5.2. The act enacted to improve corporate accountability and financial reporting is the OFinancial Services Modernization Act OSecurities Investor Protection Act OSarbanes-Oxley Act OSecurities Exchange Act

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor

Section: Chapter Questions

Problem 1CYBK

See similar textbooks

Related questions

Q: The yield to maturity for 25-year bonds is as follows for four different bond rating categories. Use…

A: The bond price is the present value of future cash flows arising from the bond. This includes…

Q: Use the average daily balance method to compute the finance charge on the credit card account for…

A: Finance charge is an additional amount which is charged on an amount financed through external…

Q: Which of the following statements is not true about the weighted average cost of capital (WACC)…

A: The acronym WACC stands for weighted average cost of capital. It refers to the minimum average cost…

Q: For a 10%, $1,000 coupon bond, a longer term bond (say, 15 years) is: less affected by changes in…

A: Solution 5:- Volatility means the change in price of bond when market interest rate changes.

Q: Suppose you had just gone long (purchased) on lot of Syarikat XYZ stock at a price of RM 15.00 each,…

A: Current Stock price is RM 15.00 Cost of 3-months put option us RM0.15 Put option is ATM(at the…

Q: Clark and Lana take a 30-year home mortgage of $127,000 at 7.9%, compounded monthly. They make their…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: The Fleming Manufacturing Company is considering a new investment. Financial projections for the…

A: Explanation : NPV of the project is help for taking the decision for accept the project / reject the…

Q: At the start of the year, Noel's time deposit has a balance of P250,000, At the end of the year, the…

A: The Financial Ratio is mainly used by the investor for measuring the financial performance of the…

Q: Assume CAPM is a correct model. Stock A's required rate of return is 12% and Stock B's required rate…

A: Stock -A Required rate of return is 12% Beta 1.2 Stock -B Required rate of return is 12% Beta 1.2…

Q: Which of the following is a financial synergy?

A: Due to synergies from mergers and acquisitions improve their debt capacities. Low cost of capital.

Q: (d) How much will Nolan save by paying the extra $40 with the number of payments from part (c)?…

A: Given, In this question, we have to solve the savings for Nolan, As, he is paying an additional…

Q: Caddie Manufacturing has a target debt-equity ratio of .75. Its cost of equity is percent, and its…

A: The cost of capital is the rate of return that a company gives on all its capital whether it is…

Q: Joo Won receives $480 on the first of each month. Hee Sun receives $480 on the last day of each…

A: Monthly payment (m) = $480 Monthly discount rate (r) = 0.01 (0.12 / 12) Number of payments (n) = 36…

Q: Some banks now have biweekly mortgages (that is, with payments every other week). Compare a 20-year,…

A: We need to use loan amortisation formula to calculate size of monthly payment PMT =P*i1-1(1+i)n…

Q: Question 4 Anne Murray is planning to buy a rental property, in addition to the family home she and…

A: Return on investment is the financial analysis , which helps to determine the profitability in the…

Q: Assume that you buy a 1-year, 210,000-peso Philippine bond that pays 7 percent when the exchange…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: At a MARR of 10% per year, what is the maximum amount that Bro should spend now on the siding…

A: Here we will use the concept of time value of money and concept of capital budgeting. At break even…

Q: Use the double-declining-balance method to make a depreciation schedule for a piece of equipment…

A: The double declining balance method of depreciation is an accelerated method of depreciation in…

Q: Directions: Compute the Customer lifetime value (CLV) for the following situation. Follow/Use the…

A: Concept. Customer lifetime value (CLV) = PV × RP × RT Where PV = purchase value RP = Repeat…

Q: Enrique accesses Finance Bank's computer system without authority to obtain protected financial…

A: Physical assault or another form of conduct that can inflict serious psychological injury are common…

Q: Find the monthly payment needed to amortize a typical $115,000 mortgage loan amortized over 30 years…

A: Loan amount (PV) = $115,000 Period = 30 Years Number of payments (n) = 30*12 = 360 Interest = 5.7%…

Q: Given an annual credit sales value of 365 million; accounts receivable beg. 36.5 million, cost of…

A: Average collection period is a ratio that is used in determining the number of days the balance on…

Q: O The NPV and IRR methods, when used to evaluate two independent and equally risky projects, will…

A: Net present value is defined as the difference between the PV of cash flows that are inflows and…

Q: 19. An investment of P300 is made at the beginning of each month for 4 years and 3 months. How much…

A: A stream of equal cash flows (CF) paid or received periodically is termed as annuity. Annuity is…

Q: The quick ratio is 1.7 while the current ratio is 2.5. The current liabilities amount to PHP5,000.…

A: Here, Quick Ratio is 1.7 Current Ratio is 2.5 Current Liabilities is PHP5,000 Cost of Good Sold is…

Q: Flo East has $25,000 to invest in a financial institution for a period of three years. Institution A…

A: Explanation : When we are calculating the Compounded Interest calculation Monthly Compounding…

Q: Yesterday, John bought a ten-year, $50,000 coupon bond with an annual rate of 5% compounded…

A: Solution:- Coupon rate of bond shows that how much coupon does the bond is paying to the bondholder,…

Q: Calculate the present value of an annuity

A: Present Value of Annuity: It refers to the present worth of the future annuity cash flow stream and…

Q: One of the mutually exclusive alternatives below must be selected Base your recommendation on…

A: Incremental Analysis: When two mutually exclusive projects have equal lives, incremental analysis…

Q: The following amounts were taken from the financial statements of Sheffield Company: 2020…

A: Profit margin in percentage = (Net income /Net sales) ×100

Q: Five years ago, you entered into a 10-year investment with a simple interest of 4% per annum and a…

A: One time principal = P Simple interest for first 5 years (r) = 4% Compounded interest for next 3…

Q: Five years ago, you entered into a 10-year investment with a simple interest of 4% per annum and a…

A: Simple interest is simple interest without considering the impact of compounding on that but…

Q: Decker Company sells a single product for $25. It had no beginning inventories. Operating data…

A: Gross profits is referred as the profit, which is derived by the company after the deduction of the…

Q: Gordon Rosel went to his bank to find out how long it will take for $1,300 to amount to $1,720 at…

A: Present value = $1,300 Future value = $1,720 Interest rate = 0.12

Q: LO 1 7. Calculating Returns and Standard Deviations Based on the following information, calculate…

A: Expected rate of return is the profit or loss on the investor that is assumed to be anticipated by…

Q: Management of TSC, Inc. is evaluating a new $79,000 investment with the following estimated cash…

A: Investment = $79000 Terminate cost = $25,000 Cost of capital = 14% Year Cash flow 1 13000 2…

Q: A company has net income of 213,700 a profit margin of 7.1 percent, and an accounts receivable…

A: Net income = 213,700 Profit margin = 7.1% Sales = Net income/Profit margin = 213700/0.071…

Q: Problem 10 Determine the present value of each perpetuity shown in the following table. Annual…

A: Perpetuity Annual amount Discount rate A 30000 8% B 100000 12% C 20000 6% D 60000 5%

Q: If money is worth 12% compounded quarterly, find the present value of 28 quarterly payment of PHP…

A: Interest rate = 12% Quarterly interest rate (r) = 12%/4 = 3% Number of quarterly payments (n) = 28…

Q: be included in the capital budgeting decision because it is:

A: Given the cost is used for development and time and money is expended

Q: Mariano deposited P5,000 today in an account that pays 8% compounded semi-annually. Two years…

A: Amount at the end of n periods at i% rate of interest can be calculated as: = Principal * (1+i)^n

Q: Which of the following events would cause a company's cost of retained earnings to increase? Group…

A: When profit increases and divided is reduced, it leads to increase in retained earnings.

Q: How long will it take for PhP 20,690 to accumulate to PhP 24,774 if money is worth 8% compounded…

A: Present value (PV) = Php 20,690 Accumulated amount (FV) = Php 24,774 Quarterly period = n Interest…

Q: SALAMAT Bank offers you two investment plans. The first investment requires you to invest Php 12,000…

A: We need to use simple interest formula to calculate i1 Amount =Principal(1+Rate*Time)

Q: Assume that Allied’s average project has a coefficient of variation (CV) in the range of 1.25 to…

A: Average Project Coefficient of variation range = 1.25 to 1.75

Q: individual earns an extra $1000 each year and places this money at the end of each year into an…

A: Solved using Financial Calculator PMT = -1000 I/Y = 7.5 N =50 CPT FV = $ 482,529.95

Q: Consider two portfolios A and B. At the expiration date, t, both portfolios have identical payoffs.…

A: Black–Scholes model: It is a differential equation used to price options contracts and require…

Q: Todd Payne, the company’s operations manager, believes that the money should be used to expand the…

A: Net Present value Present value index

Q: 23. Find the future value of an ordinary annuity for P500,000 investment at 5% quarterly for 10…

A: Hi! Thank you for the question, As per the Honor Code, we are allowed to answer one question in case…

Q: Royal Arts Company has invested 18000 as the initial investment into a new project. the following…

A: Initial cost = 18000 Years 1 cash flow = 11000 Years 2 cash flow = 8000 Years 3 cash flow = 2000…

Question

SLO-5.2. The act enacted to improve corporate
accountability and financial reporting is the
OFinancial Services Modernization Act
OSecurities Investor Protection Act
OSarbanes-Oxley Act
OSecurities Exchange Act

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Explain the impact of accounting standards suchas GAAP and the Sarbanes-Oxley Act on corporateaccounting.
"To maintain public confidence and trust in the financial reporting of companies" is the purpose of Oa. Sarbanes-Oxley Юв. GAAP Oc. the IRS Od. the FASB
This is the independent federal agency protecting the interests of investors, regulating stock markets, and ensuring companies adhere to GAAP requirements. A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual framework
The independent, nonprofit organization that sets financial accounting and reporting standards for both public- and private-sector businesses that use generally accepted accounting principles (GAAP) in the United States is which of the following? A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual framework
These are used by the FASB, and it is a set of concepts that guide financial reporting. A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual framework
Which of the following is the federal, independent agency that provides oversight of public companies to maintain fair representation of company financial activities for investors to make informed decisions? A. IRS (Internal Revenue Service) B. SEC (Securities and Exchange Commission) C. FASB (Financial Accounting Standards Board) D. FDIC (Federal Deposit Insurance Corporation)
Describe todays financial services marketplace, both depository and nondepository financial institutions.
Match the correct term with its definition. A. Financial Accounting Standards Board FASB) i. used by the FASB, which is a set of concepts that guide financial reporting B. generally accepted accounting principles (GAAP) ii. independent, nonprofit organization that sets financial accounting and reporting standards for both public- and private-sector businesses that use generally accepted accounting principles (GAAP) here in the United States C. Securities and Exchange Commission SEC) iii. standards, procedures, and principles companies must follow when preparing their financial statements D. conceptual framework iv. assumes a business will continue to operate in the foreseeable future E. going concern assumption v. independent federal agency protecting the interests of investors, regulating stock markets, and ensuring companies adhere to GAAP requirements F. time period assumption vi. companies can present useful information in shorter time periods such as years, quarters, or months
Describe the roles of the following organizations in establishing generally accepted accountingprinciples:a. The FASB b. The AICPA c. The SECFrom which of these organizations can you most easily obtain financial information about publiclyowned companies?
E10B. BUSINESS APPLICATION Match the items with the related statements that follow. 1. Safeguards the firm's assets and ensure the reliability of its accounting records. 2. Holds that the chief executive officer, the chief financial officer, and the audi- tors of a public company responsible for fully documenting and certifying the company's system of internal controls. 3. States that it is responsible for estab- lishing and maintaining adequate inter- nal control over financial reporting. a. Management's responsibility b. Section 404 of Sarbanes-Oxley Act c. Independent accountant's audit d. Internal control 4. Includes an examination of internal controls.
11 Which of the following organizations issue standards that focus on both internal and external financial reporting? Multiple Choice Federal Accounting Standards Advisory Board. Governmental Accounting Standards Board. Financial Accounting Standards Board. American Institute of CPAs.
Please answer the following question and read the discussion question rubric: What is the primary objective of financial accounting, and explain the role of the SEC and FASB?