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ime. D Question 1 1 pts An internal control system consists of the policies and procedures companies use to protect assets, ensure reliable accounting, promote efficient operations, and uphold company policies. O True O False Question 2 1pts A properly designed internal control system is a key part of systems design, analysis, and performance O True O False Question 3 1 pts Managers place a high priority on internal control systems because the systems assist managers in all of the following except: Ensuring reliable accounting. O Upholding company policies O Assuring that no loss will occur O Protecting assets. O Promoting efficient operations. Question 4 1pts Internal control systems are: O Developed by the Snball Business Administration for non-public companies. O Developed by the Internal Revenue Service for all U.S. companies O Required by Sarbanes-Oxdey (SOX) to be documented and certified if the company's stock is traded on an exchange (a public company). O Developed by the Securities and Exchange Commission for public companies O Required only if a company plans to engage in interstate commerce D Question 5 1 pts Internal control policies and procedures have limitations not including O Human fraud. O Establishing responsibilities. O Human error. O Collusion. O Cost-benefit principle. D Question 6 1 pts Harsh penalties exist for violators of the Sarbanes-Oxley Act (SOx)- sentences up to 25 years in prison with severe fines. O True T O False D | ouestion 7 1 pts DI Question 7 1 pts Which of the following is not one of the policies and procedures that make up an internal control system? O Guarantee a return to investors. O Protect assets. O Promote efficient operations. O Ensure reliable accounting. O Urge adherence to company policies. DQuestion 8 .1 pts A properly designed internal control system: O Insures profitable operations. O Lowers the company's risk of loss. O Requires the use of non-computerized systems. O Eliminates the need for an audit. O Is not necessary if the company uses a computerized system. D Question 9 1 pts A company's internal control system: O Eliminates the company's risk of loss. O Monitors company and employee performance. O Eliminates the need for audits. O Eliminates human error. O Eliminates the need for managers' certification of controls. D | Question 10 1 pts Cash registers, tim clocks, and personal identification scanners are examples of technologies that can improve internal control. O False

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