5 components of COSO’s internal control framework: control environment, risk assessment, control activity information and communication, and monitoring activities.
DQ11. Sarbanes-Oxley Legislation passed in 2002, because of the Financial Fraud that occurred at Enron and WorldCom. This requires companies that are public to issue yearly report showing effective system of internal control over financial reporting. The implications that Sarbanes-Oxley has for accounting profession are they must certify that the internal controls are effective.
BE1. 4 users pf accounting information are creditors, customers, suppliers and general public.
E1.1 One way as a student that accounting will come into play is when the FAFSA or loan department request your tax return.
A) It means that you know where a person or a company is financially at that moment or for the whole year because they provided you with the information and decisions can be based off of it.
B) The principal accounting reports are balance sheet, income statement and statement of cash flows.
C) Yes, well at least they are supposed to. Accountants use the term financial position, because it describes the entities financial resources and their obligation at that point in time and throughout the year.
D) It will