Question 1

What is the first line of enforcement of legal and professional financial reporting standards?

Accepted Answer

A) prosecuting attorney 
B) International Accounting Standards Board 
C) local civil court system in the home country 
D) external auditing 
A) prosecuting attorney 
B) International Accounting Standards Board 
C) local civil court system in the home country 
D) external auditing

Question 2

Who is considered to be the client for external auditors in the United Kingdom?

Accepted Answer

A) corporate shareholders 
B) the government 
C) society as a whole 
D) all of the above 
A) corporate shareholders 
B) the government 
C) society as a whole 
D) all of the above

Question 3

In what area is external auditing consistent internationally?

Accepted Answer

A) audit report 
B) auditing standards 
C) regulation of the profession 
D) none of the above 
A) audit report 
B) auditing standards 
C) regulation of the profession 
D) none of the above

Question 4

In Germany,who do external auditors consider as their clients?

Accepted Answer

A) the government 
B) board of directors 
C) society as a whole 
D) all of the above 
A) the government 
B) board of directors 
C) society as a whole 
D) all of the above

Question 5

Which group is responsible for establishing auditing standards in the United Kingdom?

Accepted Answer

A) Department of Trade and Industries (DTI) 
B) Consultative Committee of Accountancy Bodies (CCA
B)  
C) Auditing Practices Board (AP
B)  
D) Institute of Chartered Accountants in England and Wales (ICAEW) 
A) Department of Trade and Industries (DTI) 
B) Consultative Committee of Accountancy Bodies (CCA
B)  
C) Auditing Practices Board (AP
B)  
D) Institute of Chartered Accountants in England and Wales (ICAEW)

Question 6

The Institute of Chartered Accountants in New Zealand (ICANZ)proposed a policy of proportionate liability to replace the country's existing "joint and several liability" approach. Why was the proposal denied?

Accepted Answer

A) Proportionate responsibility for damages cannot be determined objectively. 
B) Fairness to the defendants was not relevant to ensuring fairness to the injured party. 
C) Large auditing firms would be paying proportionately higher damage awards than small firms. 
D) Such a policy is inconsistent with harmonization of international auditing standards. 
A) Proportionate responsibility for damages cannot be determined objectively. 
B) Fairness to the defendants was not relevant to ensuring fairness to the injured party. 
C) Large auditing firms would be paying proportionately higher damage awards than small firms. 
D) Such a policy is inconsistent with harmonization of international auditing standards.

Question 7

The Canadian Institute of Chartered Accountants (CICA)has taken a principles-based approach to auditor independence,whereas the Federation des Experts Comptables Europeens (FEE)has taken a conceptual approach. What is the difference?

Accepted Answer

A) The principles-based approach has been effective,but the conceptual approach has not. 
B) The principles-based approach offers more flexibility in compliance than the conceptual approach does. 
C) The principles-based approach gives specific rules and prohibitions that must be followed,but the conceptual approach asks auditors to focus on the aim of independence rather than rules. 
D) The conceptual approach is only theoretical and hasn't yet been applied,whereas the principles-based approach is currently in practice. 
A) The principles-based approach has been effective,but the conceptual approach has not. 
B) The principles-based approach offers more flexibility in compliance than the conceptual approach does. 
C) The principles-based approach gives specific rules and prohibitions that must be followed,but the conceptual approach asks auditors to focus on the aim of independence rather than rules. 
D) The conceptual approach is only theoretical and hasn't yet been applied,whereas the principles-based approach is currently in practice.

Question 8

Which of the following is the responsibility of an audit committee?

Accepted Answer

A) oversee the internal control system 
B) oversee internal auditing and the independent public accounting function 
C) monitor the financial reporting process 
D) all of the above 
A) oversee the internal control system 
B) oversee internal auditing and the independent public accounting function 
C) monitor the financial reporting process 
D) all of the above

Question 9

Why was the issuance of International Standard on Auditing 13 (IAS 13)considered so important to harmonization of auditing standards?

Accepted Answer

A) It required all multinational corporations to adopt international auditing standards by 2008. 
B) It specified the form and content of the annual report. 
C) It provided guidance on the form and content of the audit report. 
D) It requires the auditor to express an opinion on whether the statements give a true and fair view of corporate performance. 
A) It required all multinational corporations to adopt international auditing standards by 2008. 
B) It specified the form and content of the annual report. 
C) It provided guidance on the form and content of the audit report. 
D) It requires the auditor to express an opinion on whether the statements give a true and fair view of corporate performance.

Question 10

Under the Sarbanes-Oxley Act of 2002,who is responsible for paying the independent auditor?

Accepted Answer

A) management 
B) audit committee 
C) government who has jurisdiction over the corporation 
D) American Institute of Certified Public Accountants (AICP
A)  
A) management 
B) audit committee 
C) government who has jurisdiction over the corporation 
D) American Institute of Certified Public Accountants (AICP
A)

Question 11

In multinational corporations,to whom are the external auditors responsible according to OECD guidelines?

Accepted Answer

A) corporate management 
B) stockholders 
C) government of the host country 
D) creditors 
A) corporate management 
B) stockholders 
C) government of the host country 
D) creditors

Question 12

What group is responsible for developing international auditing standards?

Accepted Answer

A) International Accounting Standards Board (IAS
B)  
B) International Auditing and Assurance Standards Board (IAAS
B)  
C) International Organization of Securities Commissions (IOSCO) 
D) Organization for Economic Cooperation and Development (OEC
D)  
A) International Accounting Standards Board (IAS
B)  
B) International Auditing and Assurance Standards Board (IAAS
B)  
C) International Organization of Securities Commissions (IOSCO) 
D) Organization for Economic Cooperation and Development (OEC
D)

Question 13

What does the Foreign Corrupt Practices Act have to do with accounting?

Accepted Answer

A) It requires that U.S.companies properly record bribes made to obtain business from foreign clients. 
B) It requires that appropriate internal control systems be maintained by publicly traded U.S.companies. 
C) It mandates the use of the temporal method of translating assets obtained illegally in foreign countries. 
D) It demands that publicly traded U.S.companies follow international best-practices when auditing illegal operations abroad. 
A) It requires that U.S.companies properly record bribes made to obtain business from foreign clients. 
B) It requires that appropriate internal control systems be maintained by publicly traded U.S.companies. 
C) It mandates the use of the temporal method of translating assets obtained illegally in foreign countries. 
D) It demands that publicly traded U.S.companies follow international best-practices when auditing illegal operations abroad.

Question 14

What is the role of internal auditing?

Accepted Answer

A) to substitute for the external auditor whenever possible 
B) to provide assurance and consulting services to improve an organization's operations 
C) to assist the audit committee in negotiations with the external auditor 
D) to mediate disagreements between the external auditor and corporate management 
A) to substitute for the external auditor whenever possible 
B) to provide assurance and consulting services to improve an organization's operations 
C) to assist the audit committee in negotiations with the external auditor 
D) to mediate disagreements between the external auditor and corporate management

Question 15

The OECD believes which group in a multinational corporation should oversee the financial reporting function to ensure that appropriate controls are in place to safeguard information integrity?

Accepted Answer

A) corporate management 
B) internal auditors 
C) board of directors 
D) information systems department 
A) corporate management 
B) internal auditors 
C) board of directors 
D) information systems department

Question 16

If an auditor breaks a contractual obligation,such as failing to complete an audit within the time frame specified in the engagement letter,what kind of liability does the auditor face?

Accepted Answer

A) criminal liability 
B) civil liability 
C) professional sanctions 
D) none of the above 
A) criminal liability 
B) civil liability 
C) professional sanctions 
D) none of the above

Question 17

What is the primary role of external auditing in multinational corporations?

Accepted Answer

A) preparing the annual report to corporate shareholders 
B) designing a working system of internal accounting controls 
C) assuring that financial statement information is high quality 
D) selecting independent members for the board of directors 
A) preparing the annual report to corporate shareholders 
B) designing a working system of internal accounting controls 
C) assuring that financial statement information is high quality 
D) selecting independent members for the board of directors

Question 18

What is the focus of Section 404 of the Sarbanes-Oxley Act?

Accepted Answer

A) requirement that all members of the board of directors be independent of the corporation 
B) It addresses the need for a consistent set of international auditing standards. 
C) attesting to the reliability of internal controls in the annual report 
D) This defines the membership in the Public Company Accounting Oversight Board (PCAO
B) . 
A) requirement that all members of the board of directors be independent of the corporation 
B) It addresses the need for a consistent set of international auditing standards. 
C) attesting to the reliability of internal controls in the annual report 
D) This defines the membership in the Public Company Accounting Oversight Board (PCAO
B) .

What is the first line of enforcement of legal and professional financial reporting standards?

Who is considered to be the client for external auditors in the United Kingdom?

In what area is external auditing consistent internationally?

In Germany,who do external auditors consider as their clients?

Which group is responsible for establishing auditing standards in the United Kingdom?

The Institute of Chartered Accountants in New Zealand (ICANZ)proposed a policy of proportionate liability to replace the country's existing "joint and several liability" approach. Why was the proposal denied?

The Canadian Institute of Chartered Accountants (CICA)has taken a principles-based approach to auditor independence,whereas the Federation des Experts Comptables Europeens (FEE)has taken a conceptual approach. What is the difference?

Which of the following is the responsibility of an audit committee?

Why was the issuance of International Standard on Auditing 13 (IAS 13)considered so important to harmonization of auditing standards?

Under the Sarbanes-Oxley Act of 2002,who is responsible for paying the independent auditor?

In multinational corporations,to whom are the external auditors responsible according to OECD guidelines?

What group is responsible for developing international auditing standards?

What does the Foreign Corrupt Practices Act have to do with accounting?

What is the role of internal auditing?

The OECD believes which group in a multinational corporation should oversee the financial reporting function to ensure that appropriate controls are in place to safeguard information integrity?

If an auditor breaks a contractual obligation,such as failing to complete an audit within the time frame specified in the engagement letter,what kind of liability does the auditor face?

What is the primary role of external auditing in multinational corporations?

What is the focus of Section 404 of the Sarbanes-Oxley Act?

Introduction to International Accounting

Worldwide Accounting Diversity

International Convergence of Financial Reporting

International Financial Reporting Standards: Part I

International Financial Reporting Standards: Part II

Comparative Accounting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Additional Financial Reporting Issues

Analysis of Foreign Financial Statements

International Taxation

International Transfer Pricing

Strategic Accounting Issues in Multinational Corporations

International Corporate Social Reporting

Filters

Exam 14: Comparative International Auditing and Corporate Governance

What is the first line of enforcement of legal and professional financial reporting standards?

Who is considered to be the client for external auditors in the United Kingdom?

In what area is external auditing consistent internationally?

In Germany,who do external auditors consider as their clients?

Which group is responsible for establishing auditing standards in the United Kingdom?

The Institute of Chartered Accountants in New Zealand (ICANZ)proposed a policy of proportionate liability to replace the country's existing "joint and several liability" approach. Why was the proposal denied?

The Canadian Institute of Chartered Accountants (CICA)has taken a principles-based approach to auditor independence,whereas the Federation des Experts Comptables Europeens (FEE)has taken a conceptual approach. What is the difference?

Which of the following is the responsibility of an audit committee?

Why was the issuance of International Standard on Auditing 13 (IAS 13)considered so important to harmonization of auditing standards?

Under the Sarbanes-Oxley Act of 2002,who is responsible for paying the independent auditor?

In multinational corporations,to whom are the external auditors responsible according to OECD guidelines?

What group is responsible for developing international auditing standards?

What does the Foreign Corrupt Practices Act have to do with accounting?

What is the role of internal auditing?

The OECD believes which group in a multinational corporation should oversee the financial reporting function to ensure that appropriate controls are in place to safeguard information integrity?

If an auditor breaks a contractual obligation,such as failing to complete an audit within the time frame specified in the engagement letter,what kind of liability does the auditor face?

What is the primary role of external auditing in multinational corporations?

What is the focus of Section 404 of the Sarbanes-Oxley Act?

Introduction to International Accounting

Worldwide Accounting Diversity

International Convergence of Financial Reporting

International Financial Reporting Standards: Part I

International Financial Reporting Standards: Part II

Comparative Accounting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Additional Financial Reporting Issues

Analysis of Foreign Financial Statements

International Taxation

International Transfer Pricing

Strategic Accounting Issues in Multinational Corporations

International Corporate Social Reporting

Filters