Accounting firms are allowed to provide both auditing services and a full range of consulting services to their public company clients.

All private and foreign companies must issue an internal control report evaluated by an outside auditor.

The Public Company Accounting Oversight Board oversees the work of auditors of public companies.

Those who commit securities fraud must be sentenced to 10 years in prison.

Risk assessment is the​ "tone at the​ top" of the business.

Internal auditors monitor company controls to safeguard​ assets, and external auditors monitor the controls to ensure that the accounting records are accurate.

Risk assessment is designed to ensure that the​ business's goals are achieved.

A company must identify its risks and take necessary steps to minimize them.

separation of duties

​competent, reliable, and ethical personnel

assignment of responsibilities

documents

A company should purchase a fireproof vault to protect legal documents.

The invoices and orders must be​ pre-numbered.

Separate the custody of assets from accounting.

Mandatory vacations will improve internal control.

a credit to Cash

a credit to Miscellaneous Expense

a credit to Petty Cash

a debit to Accounts Receivable

an addition on the book side

a deduction on the book side

a deduction on the bank side

an addition on the bank side

a deduction on the book side

a deduction on the bank side

an addition on the book side

an addition on the bank side

outstanding checks and correction of book error

bank service charge and correction of book error

deposit in transit and outstanding checks

deposit in transit and NSF check