Problem 1. As a way to reduce fraudulent behavior in public companies:
- violations of GAAP have been declared punishable by death.
- company officers violating GAAP lose the right to vote in federal elections.
- companies must hire independent accountants to review their financial statements for compliance with GAAP.
- all top managers must be elected by shareholders.
- employees are given an opportunity to file performance evaluations of top managers with the board of directors.
Problem 2. All of the following are functions of internal auditors EXCEPT:
- to ensure that revenue is accurately recorded.
- to ensure that depreciation has been done in accordance with GAAP.
- to watch out for fraud by company employees.
- to verify that GAAP rules were followed in preparing financial statements.
- to ensure that expenses have been recorded in accordance with GAAP.
Problem 3. Insuring that revenues and expenses are accurately recorded and that the appropriate accounting rules have been properly used to report this data is the role of
- Human Resources
- the Big Four
- external accountants
- internal auditors
- MBA's