Multiple choice review questions. Please select the best answer for each question.1. Which...

Multiple choice review questions. Please select the best answer for each question.

1. Which of the following legally requires management to assess a company’s internal controls annually?

a. Foreign Corrupt Practices Act

b. Brown’s risk taxonomy

c. COSO Internal Controlframework

d. Sarbanes-Oxley Act

2. Which of the following is a type of financial risk according to Brown’s taxonomy?

a. Credit risk

b. Systems risk

c. Legal and regulatory risk

d. Business strategy risk

3. In the COSO Internal Controlframework, the “tone at the top” is most closely related to:

a. Monitoring.

b. Control environment.

c. Control activities.

d. Information and communication.

4. To develop and sustain a strong control environment, managers and others should:

a. Be committed to integrity and ethical behavior.

b. Demonstrate a commitment to competence in carrying out their duties and responsibilities.

c. Maintain a consistent, appropriate management philosophy.

d. All of the above.

5. All of the following are basic purposes of internal control except:

a. Eliminating fraud.

b. Ensuring reliable financial statements.

c. Promoting operating efficiency.

d. Safeguarding assets.