Accounting Information Systems: The Processes and Controls, 2nd Edition

END OF CHAPTER MATERIAL

CONCEPT CHECK

1. 1. Which of the following is not considered a component of corporate governance?
   1. Board of directors oversight
   2. IRS audits
   3. Internal audits
   4. External audits
2. 2. Good corporate governance is achieved when the interests of which of the following groups are balanced?
   1. Internal auditors and external auditors
   2. Shareholders and regulators
   3. Shareholders, the corporation, and the community
   4. Regulators and the community
3. 3. Over time, corporate leaders establish trust by being active leaders, stressing integrity, clarity, and consistency. This is referred to as
   1. internal control
   2. corporate governance
   3. fiduciary duty
   4. tone at the top
4. 4. Corporate governance is primarily concerned with
   1. enhancing the trend toward more women serving on boards of directors
   2. promoting an increase in hostile takeovers
   3. promoting the legitimacy of corporate charters
   4. emphasizing the relative roles, rights, and accountability of a company's stakeholders
5. 5. The governing body responsible for establishing the COSO framework for internal controls evaluations is the
   1. Treadway Commission
   2. SEC
   3. PCAOB
   4. FASB
6. 6. When financial information is presented properly and its correctness is verifiable, it is
   1. transparent
   2. compliant
   3. accurate
   4. accountable
7. 7. Which of the following nonaudit services may be performed by auditors for a public-company audit client?
   1. IT consulting regarding the general ledger ...