Question 1

After a CPA has served as the lead partner on an audit client for five years,that audit partner may:

Accepted Answer

A)  Resume providing audit services to that client after a gap in service of one year 
B)  Resume providing audit services to that client after a gap in service of five years 
C)  Become the concurring partner, and later return to become the lead audit partner after a gap in service as the lead audit partner of one year 
D)  Become the concurring partner, but never again serve as the lead audit partner 
A)  Resume providing audit services to that client after a gap in service of one year 
B)  Resume providing audit services to that client after a gap in service of five years 
C)  Become the concurring partner, and later return to become the lead audit partner after a gap in service as the lead audit partner of one year 
D)  Become the concurring partner, but never again serve as the lead audit partner B

Question 2

Which of the following provisions of the Sarbanes-Oxley Act applies to nonprofit organizations?

Accepted Answer

A)  The document destruction rules 
B)  The whistleblower reward and incentive provisions 
C)  The Audit Committee rules 
D)  The Form 8K filing rules 
A)  The document destruction rules 
B)  The whistleblower reward and incentive provisions 
C)  The Audit Committee rules 
D)  The Form 8K filing rules A

Question 3

Under the Sarbanes-Oxley Act,the establishment of Codes of Conduct by publicly traded companies became:

Accepted Answer

A)  Largely irrelevant due to the mandates imposed by stock exchanges 
B)  Largely irrelevant because the law itself imposed strict rules of conduct on publicly traded companies 
C)  Standardized in form and substance, utilizing the uniform rules expressed in the law 
D)  Widespread 
A)  Largely irrelevant due to the mandates imposed by stock exchanges 
B)  Largely irrelevant because the law itself imposed strict rules of conduct on publicly traded companies 
C)  Standardized in form and substance, utilizing the uniform rules expressed in the law 
D)  Widespread D

Question 4

If a publicly traded corporation misstated its accounting filings to the SEC,the "clawback" provision in the Sarbanes-Oxley Act gives the corporation the right to recover:

Accepted Answer

A)  Dividends earned by the company's CEO and CFO 
B)  Interest earned by the company's CEO and CFO 
C)  Capital gains earned by the company's CEO and CFO on stock bought within 12 months after the date of the misstated financial statements 
D)  Capital gains earned by the company's CEO and CFO on stock realized by sale within 12 months after the date of the misstated financial statements 
A)  Dividends earned by the company's CEO and CFO 
B)  Interest earned by the company's CEO and CFO 
C)  Capital gains earned by the company's CEO and CFO on stock bought within 12 months after the date of the misstated financial statements 
D)  Capital gains earned by the company's CEO and CFO on stock realized by sale within 12 months after the date of the misstated financial statements

Question 5

In accordance with Sarbanes-Oxley Act,employee Codes of Conduct should:

Accepted Answer

A)  Promote employees' responsibilities to preserve the confidentiality of company financial information 
B)  Be disclosed on a company website or in SEC filings 
C)  Be signed annually, or more frequently, by company officers engaged in financial reporting oversight roles 
D)  Be acknowledged annually in writing by all managerial and professional employees 
A)  Promote employees' responsibilities to preserve the confidentiality of company financial information 
B)  Be disclosed on a company website or in SEC filings 
C)  Be signed annually, or more frequently, by company officers engaged in financial reporting oversight roles 
D)  Be acknowledged annually in writing by all managerial and professional employees

Question 6

Registration with the PCAOB is required of:

Accepted Answer

A)  All CPA firms that wish to audit publicly traded companies 
B)  All CPA firms that wish to provide any type of professional services to publicly traded companies, including management consulting services 
C)  All CPA firms that wish to design information processing systems that assist publicly traded companies in compiling their financial statements 
D)  All CPA firms that perform audits 
A)  All CPA firms that wish to audit publicly traded companies 
B)  All CPA firms that wish to provide any type of professional services to publicly traded companies, including management consulting services 
C)  All CPA firms that wish to design information processing systems that assist publicly traded companies in compiling their financial statements 
D)  All CPA firms that perform audits

Question 7

Which of the following is least likely to arise if the same audit partner repeatedly serves as the lead auditor on a client engagement for multiple years?

Accepted Answer

A)  The undue influence threat to independence 
B)  Subordination of judgment 
C)  The adverse interest threat to independence 
D)  A loss of objectivity 
A)  The undue influence threat to independence 
B)  Subordination of judgment 
C)  The adverse interest threat to independence 
D)  A loss of objectivity

Question 8

Which of the following categories of CPA firm professionals must discontinue providing auditing services to an audit client after serving that client for a five-year consecutive period?

Accepted Answer

A)  Only the lead audit partner 
B)  Only the lead partner and the concurring audit partner 
C)  The lead audit partner, the concurring audit partner, and all other CPA firm partners who provided nonaudit services to the client 
D)  Any CPA firm professional associated with, or employed by, the CPA firm 
A)  Only the lead audit partner 
B)  Only the lead partner and the concurring audit partner 
C)  The lead audit partner, the concurring audit partner, and all other CPA firm partners who provided nonaudit services to the client 
D)  Any CPA firm professional associated with, or employed by, the CPA firm

Question 9

An Audit Committee must:

Accepted Answer

A)  Be comprised solely of independent individuals who do not have direct financial interests in the company they serve 
B)  Be comprised solely of independent individuals who are not members of the corporation's Board of Directors 
C)  Be comprised solely of individuals who also serve as company directors 
D)  Approve the core accounting methods selected and applied by the company's auditors in presenting company financial statements 
A)  Be comprised solely of independent individuals who do not have direct financial interests in the company they serve 
B)  Be comprised solely of independent individuals who are not members of the corporation's Board of Directors 
C)  Be comprised solely of individuals who also serve as company directors 
D)  Approve the core accounting methods selected and applied by the company's auditors in presenting company financial statements

Question 10

Do you agree or disagree with the concept of mandatory audit firm rotation? Why or why not?

Accepted Answer

I agree with the concept of mandatory au

Question 11

The PCAOB is:

Accepted Answer

A)  A government-run entity 
B)  A division of the AICPA 
C)  Not a division of the AICPA, but it is overseen by the AICPA 
D)  A nongovernmental entity that is overseen by the SEC 
A)  A government-run entity 
B)  A division of the AICPA 
C)  Not a division of the AICPA, but it is overseen by the AICPA 
D)  A nongovernmental entity that is overseen by the SEC

Question 12

If a junior staff member on an audit team wishes to accept employment in a junior staff accounting role at the audit client,she:

Accepted Answer

A)  Does not have to wait at all 
B)  Has to wait at least one year if the audit client is a publicly traded company 
C)  Has to wait at least one year if the audit client is either a publicly traded company or a privately held company 
D)  Has to wait at least one year if her new position likely will require her to interact with colleagues with whom she worked at her former employer 
A)  Does not have to wait at all 
B)  Has to wait at least one year if the audit client is a publicly traded company 
C)  Has to wait at least one year if the audit client is either a publicly traded company or a privately held company 
D)  Has to wait at least one year if her new position likely will require her to interact with colleagues with whom she worked at her former employer

Question 13

Under the Sarbanes-Oxley Act,which of the following services is a CPA prohibited from providing to his or her CPA firms' audit clients?

Accepted Answer

A)  Tax return preparation services to the audit client, under all circumstances 
B)  Tax return preparation services to the audit client, even if the client's Audit Committee preauthorizes these services 
C)  Tax return preparation services of personal tax returns for key officers of the audit client 
D)  Tax planning services that assist management in developing tax-minimization strategies 
A)  Tax return preparation services to the audit client, under all circumstances 
B)  Tax return preparation services to the audit client, even if the client's Audit Committee preauthorizes these services 
C)  Tax return preparation services of personal tax returns for key officers of the audit client 
D)  Tax planning services that assist management in developing tax-minimization strategies

Question 14

The Sarbanes-Oxley Act requires that publicly traded companies:

Accepted Answer

A)  Adopt formal policies that prohibit them from granting employees exemptions from company "conflict of interest" rules 
B)  Decide "conflict of interest" issues based on an employee's individual facts and circumstances, rather than based on arbitrary guidelines 
C)  Disclose decisions concerning employee "conflict of interest" waiver requests on the company's website or in some other widely accessible format 
D)  Disclose to the SEC the rationale for any decisions that waive the application of their "conflict of interest" in a particular situation 
A)  Adopt formal policies that prohibit them from granting employees exemptions from company "conflict of interest" rules 
B)  Decide "conflict of interest" issues based on an employee's individual facts and circumstances, rather than based on arbitrary guidelines 
C)  Disclose decisions concerning employee "conflict of interest" waiver requests on the company's website or in some other widely accessible format 
D)  Disclose to the SEC the rationale for any decisions that waive the application of their "conflict of interest" in a particular situation

Question 15

Under the Sarbanes-Oxley Act,the use of a concurring audit partner on an audit engagement for a company regulated by this Act is:

Accepted Answer

A)  Mandatory, under all circumstances 
B)  Mandatory, only if the audit client has been cited by the SEC for failing to present its financial statements in conformity with GAAP during the preceding five-year period 
C)  Recommended, but optional as long as the absence of a concurring partner is disclosed to the SEC 
D)  Recommended, but optional as long as the absence of a concurring partner is disclosed as an integral part of the audit client's financial statements 
A)  Mandatory, under all circumstances 
B)  Mandatory, only if the audit client has been cited by the SEC for failing to present its financial statements in conformity with GAAP during the preceding five-year period 
C)  Recommended, but optional as long as the absence of a concurring partner is disclosed to the SEC 
D)  Recommended, but optional as long as the absence of a concurring partner is disclosed as an integral part of the audit client's financial statements

Question 16

What provisions of the Sarbanes-Oxley Act pertain to nonprofit charitable organizations? Do you believe that other provisions should also apply?

Accepted Answer

The Sarbanes-Oxley Act primarily pertain

Question 17

Under the Sarbanes-Oxley Act,loans to top corporate officers:

Accepted Answer

A)  Cannot be made by a publicly traded company under any circumstances 
B)  Must bear a fair market interest rate if their employer is a publicly traded company 
C)  May not be made directly by their employer if the employer is a publicly traded company, but the employer may serve as a co-signer or guarantor on a loan granted to them by a bank 
D)  May be made by significant company shareholders in publicly traded companies as long as these loans satisfy the law's "commercially reasonable terms" requirement 
A)  Cannot be made by a publicly traded company under any circumstances 
B)  Must bear a fair market interest rate if their employer is a publicly traded company 
C)  May not be made directly by their employer if the employer is a publicly traded company, but the employer may serve as a co-signer or guarantor on a loan granted to them by a bank 
D)  May be made by significant company shareholders in publicly traded companies as long as these loans satisfy the law's "commercially reasonable terms" requirement

Question 18

If a publicly traded corporation misstated its accounting filings to the SEC,the "clawback" provision in the Sarbanes-Oxley Act gives the corporation the right to recover certain gains and profits earned by:

Accepted Answer

A)  The CPA or CPA firm that performed the company's audit 
B)  The lead audit partner and concurring quality review partner who certified the company's financial statements 
C)  The particular employee or employees who directly made the accounting error 
D)  The CEO and CFO of the corporation 
A)  The CPA or CPA firm that performed the company's audit 
B)  The lead audit partner and concurring quality review partner who certified the company's financial statements 
C)  The particular employee or employees who directly made the accounting error 
D)  The CEO and CFO of the corporation

Question 19

Under the Sarbanes-Oxley Act,a CFO may:

Accepted Answer

A)  Delegate the task of certifying company financial statements to the company's designated Chief Compliance Officer 
B)  Delegate the task of certifying company financial statements to the company's top accounting executive, commonly called the Controller of the Chief Accounting Officer 
C)  Delegate the task of certifying company financial statements to one or more heads of company subsidiaries or divisions through the use of subcertifications 
D)  Not delegate the responsibility for certifying company financial statements 
A)  Delegate the task of certifying company financial statements to the company's designated Chief Compliance Officer 
B)  Delegate the task of certifying company financial statements to the company's top accounting executive, commonly called the Controller of the Chief Accounting Officer 
C)  Delegate the task of certifying company financial statements to one or more heads of company subsidiaries or divisions through the use of subcertifications 
D)  Not delegate the responsibility for certifying company financial statements

Question 20

Under the Sarbanes-Oxley Act,tax professionals who are employees or partners of auditing firms may not provide:

Accepted Answer

A)  Tax return preparation services if the results of those services will be utilized in determining Tax Expense on the client's audited financial statements 
B)  Tax return preparation services unless the provision of these services is first preapproved by the client's Audit Committee 
C)  Tax return preparation services unless the provision of these services is first preapproved by the client's CFO 
D)  Tax return preparation services unless the provision of these services is first preapproved by the client's Board of Directors 
A)  Tax return preparation services if the results of those services will be utilized in determining Tax Expense on the client's audited financial statements 
B)  Tax return preparation services unless the provision of these services is first preapproved by the client's Audit Committee 
C)  Tax return preparation services unless the provision of these services is first preapproved by the client's CFO 
D)  Tax return preparation services unless the provision of these services is first preapproved by the client's Board of Directors

After a CPA has served as the lead partner on an audit client for five years,that audit partner may:

Which of the following provisions of the Sarbanes-Oxley Act applies to nonprofit organizations?

Under the Sarbanes-Oxley Act,the establishment of Codes of Conduct by publicly traded companies became:

If a publicly traded corporation misstated its accounting filings to the SEC,the "clawback" provision in the Sarbanes-Oxley Act gives the corporation the right to recover:

In accordance with Sarbanes-Oxley Act,employee Codes of Conduct should:

Registration with the PCAOB is required of:

Which of the following is least likely to arise if the same audit partner repeatedly serves as the lead auditor on a client engagement for multiple years?

Which of the following categories of CPA firm professionals must discontinue providing auditing services to an audit client after serving that client for a five-year consecutive period?

An Audit Committee must:

Do you agree or disagree with the concept of mandatory audit firm rotation? Why or why not?

The PCAOB is:

If a junior staff member on an audit team wishes to accept employment in a junior staff accounting role at the audit client,she:

Under the Sarbanes-Oxley Act,which of the following services is a CPA prohibited from providing to his or her CPA firms' audit clients?

The Sarbanes-Oxley Act requires that publicly traded companies:

Under the Sarbanes-Oxley Act,the use of a concurring audit partner on an audit engagement for a company regulated by this Act is:

What provisions of the Sarbanes-Oxley Act pertain to nonprofit charitable organizations? Do you believe that other provisions should also apply?

Under the Sarbanes-Oxley Act,loans to top corporate officers:

If a publicly traded corporation misstated its accounting filings to the SEC,the "clawback" provision in the Sarbanes-Oxley Act gives the corporation the right to recover certain gains and profits earned by:

Under the Sarbanes-Oxley Act,a CFO may:

Under the Sarbanes-Oxley Act,tax professionals who are employees or partners of auditing firms may not provide:

Introduction to Ethics

Ethical Principles and Reasoning

The Core Philosophies

Virtue,justice,and Social Responsibility

Why We Cheat

Greed,corruption,and Collusion

Fraud and Earnings Management

Discreditable Acts: Discrimination,deceit,and Disclosure

Confidentiality

Independence and Moral Seduction

Conflicts of Interest

Duties As a Whistleblower

Duties of Tax Professionals

Duties of Fiduciaries: Financial Planners,trustees,and Executors

Duties in the Accounting Workplace Online Only

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Exam 13: Duties of Public-Company Auditors: the Sarbanesoxley Act

After a CPA has served as the lead partner on an audit client for five years,that audit partner may:

Which of the following provisions of the Sarbanes-Oxley Act applies to nonprofit organizations?

Under the Sarbanes-Oxley Act,the establishment of Codes of Conduct by publicly traded companies became:

If a publicly traded corporation misstated its accounting filings to the SEC,the "clawback" provision in the Sarbanes-Oxley Act gives the corporation the right to recover:

In accordance with Sarbanes-Oxley Act,employee Codes of Conduct should:

Registration with the PCAOB is required of:

Which of the following is least likely to arise if the same audit partner repeatedly serves as the lead auditor on a client engagement for multiple years?

Which of the following categories of CPA firm professionals must discontinue providing auditing services to an audit client after serving that client for a five-year consecutive period?

An Audit Committee must:

Do you agree or disagree with the concept of mandatory audit firm rotation? Why or why not?

The PCAOB is:

If a junior staff member on an audit team wishes to accept employment in a junior staff accounting role at the audit client,she:

Under the Sarbanes-Oxley Act,which of the following services is a CPA prohibited from providing to his or her CPA firms' audit clients?

The Sarbanes-Oxley Act requires that publicly traded companies:

Under the Sarbanes-Oxley Act,the use of a concurring audit partner on an audit engagement for a company regulated by this Act is:

What provisions of the Sarbanes-Oxley Act pertain to nonprofit charitable organizations? Do you believe that other provisions should also apply?

Under the Sarbanes-Oxley Act,loans to top corporate officers:

If a publicly traded corporation misstated its accounting filings to the SEC,the "clawback" provision in the Sarbanes-Oxley Act gives the corporation the right to recover certain gains and profits earned by:

Under the Sarbanes-Oxley Act,a CFO may:

Under the Sarbanes-Oxley Act,tax professionals who are employees or partners of auditing firms may not provide:

Introduction to Ethics

Ethical Principles and Reasoning

The Core Philosophies

Virtue,justice,and Social Responsibility

Why We Cheat

Greed,corruption,and Collusion

Fraud and Earnings Management

Discreditable Acts: Discrimination,deceit,and Disclosure

Confidentiality

Independence and Moral Seduction

Conflicts of Interest

Duties As a Whistleblower

Duties of Tax Professionals

Duties of Fiduciaries: Financial Planners,trustees,and Executors

Duties in the Accounting Workplace Online Only

Filters