Question 1

What types of organizations are subject to the mandates of the Sarbanes-Oxley Act?

Accepted Answer

The Sarbanes-Oxley Act (SOX), officially

Question 2

Do any provisions of the Sarbanes-Oxley Act pertain to tax accounting professionals?

Accepted Answer

Yes, certain provisions of the Sarbanes-

Question 3

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

Accepted Answer

A)  Profits earned from the exercise of stock options by the company's CEO and CFO only 
B)  Profits earned from the exercise of stock options by all of the company's officers who serve in financial reporting oversight roles 
C)  Profits earned from the exercise of stock options by all of the company's officers and directors who serve in financial reporting oversight roles 
D)  Profits earned from the exercise of stock options by all company personnel who were involved in the preparation of, or content determination of, the company's financial statements 
A)  Profits earned from the exercise of stock options by the company's CEO and CFO only 
B)  Profits earned from the exercise of stock options by all of the company's officers who serve in financial reporting oversight roles 
C)  Profits earned from the exercise of stock options by all of the company's officers and directors who serve in financial reporting oversight roles 
D)  Profits earned from the exercise of stock options by all company personnel who were involved in the preparation of, or content determination of, the company's financial statements

Question 4

The PCAOB is:

Accepted Answer

A)  A self-regulatory body 
B)  A regulatory body that solely is in charge of developing standards that govern audits of publicly traded companies 
C)  A regulatory body that, jointly with the AICPA, develops auditing standards that govern audits of publicly traded companies 
D)  A regulatory body that sets and, when necessary, enforces ethical standards for all CPAs 
A)  A self-regulatory body 
B)  A regulatory body that solely is in charge of developing standards that govern audits of publicly traded companies 
C)  A regulatory body that, jointly with the AICPA, develops auditing standards that govern audits of publicly traded companies 
D)  A regulatory body that sets and, when necessary, enforces ethical standards for all CPAs

Question 5

Under the Sarbanes-Oxley Act,what tax services may a CPA firm provide to a publicly-traded audit client? Does the performance of both tax services and auditing services to a client pose a threat to the auditor's objectivity?

Accepted Answer

Under the Sarbanes-Oxley Act (SOX) of 20

Question 6

Registration with the PCAOB requires CPA firms to:

Accepted Answer

A)  Pay a substantial one-time only fee 
B)  Submit to periodic PCAOB quality control inspections of their federal tax compliance practices 
C)  Submit annual reports to the PCAOB that identify their audit clients and fee structures 
D)  Submit to periodic PCAOB quality control inspections that are disseminated to the firm's audit clients 
A)  Pay a substantial one-time only fee 
B)  Submit to periodic PCAOB quality control inspections of their federal tax compliance practices 
C)  Submit annual reports to the PCAOB that identify their audit clients and fee structures 
D)  Submit to periodic PCAOB quality control inspections that are disseminated to the firm's audit clients

Question 7

If a publicly traded corporation misstated its accounting filings to the SEC,which of the following is given the right under the "clawback" provision of the Sarbanes-Oxley Act to reclaim profits earned by the company's CEO?

Accepted Answer

A)  Only the company itself 
B)  Only the shareholders who can prove that they suffered financial harm 
C)  Only the corporate financial officers who can prove that they suffered reputational harm 
D)  All of the above 
A)  Only the company itself 
B)  Only the shareholders who can prove that they suffered financial harm 
C)  Only the corporate financial officers who can prove that they suffered reputational harm 
D)  All of the above

Question 8

Who may serve on an Audit Committee?

Accepted Answer

An Audit Committee is a key component of

Question 9

Some commentator advocate in favor of audit firm rotation:

Accepted Answer

A)  To minimize the management participation threat 
B)  To give new CPA firms the opportunity to expand and create employment opportunities for inexperienced accountants to gain valuable professional skills 
C)  As a safeguard against the familiarity threat 
D)  As a safeguard against auditor fee gouging 
A)  To minimize the management participation threat 
B)  To give new CPA firms the opportunity to expand and create employment opportunities for inexperienced accountants to gain valuable professional skills 
C)  As a safeguard against the familiarity threat 
D)  As a safeguard against auditor fee gouging

Question 10

The PCAOB:

Accepted Answer

A)  Is entirely independent of the AICPA 
B)  Appoints the members of the AICPA's governing board, but otherwise is independent of the AICPA 
C)  Frequently is criticized for developing financial accounting standards that are more complex than those established by the FASB 
D)  Legally has the power to override the AICPA when their areas of jurisdiction conflict or overlap 
A)  Is entirely independent of the AICPA 
B)  Appoints the members of the AICPA's governing board, but otherwise is independent of the AICPA 
C)  Frequently is criticized for developing financial accounting standards that are more complex than those established by the FASB 
D)  Legally has the power to override the AICPA when their areas of jurisdiction conflict or overlap

Question 11

Provisions of the Sarbanes-Oxley Act apply to:

Accepted Answer

A)  Only the officers of publicly-traded companies only 
B)  Only the CEO and CFO of publicly-traded companies 
C)  Publicly-traded companies and certain individuals associated with them 
D)  All companies and certain individuals associated with them 
A)  Only the officers of publicly-traded companies only 
B)  Only the CEO and CFO of publicly-traded companies 
C)  Publicly-traded companies and certain individuals associated with them 
D)  All companies and certain individuals associated with them

Question 12

Under Sarbanes-Oxley,the CEO and CFO of publicly traded companies have to certify:

Accepted Answer

A)  Company compliance with the Uniform Code of Conduct 
B)  That company financial statements accurately disclose all pending litigation claims and the estimated dollar amount of expected losses, if material 
C)  The effectiveness of the company's internal controls 
D)  That they have no known or foreseeable conflicts of interest with corporate goals and policies 
A)  Company compliance with the Uniform Code of Conduct 
B)  That company financial statements accurately disclose all pending litigation claims and the estimated dollar amount of expected losses, if material 
C)  The effectiveness of the company's internal controls 
D)  That they have no known or foreseeable conflicts of interest with corporate goals and policies

Question 13

A publicly traded company files a Form 8K with the SEC:

Accepted Answer

A)  Monthly, after it has been audited 
B)  Quarterly, after a CPA has performed a review 
C)  Annually, after a CPA has performed an audit 
D)  Occasionally, but not according to a fixed schedule 
A)  Monthly, after it has been audited 
B)  Quarterly, after a CPA has performed a review 
C)  Annually, after a CPA has performed an audit 
D)  Occasionally, but not according to a fixed schedule

Question 14

The concurring auditor who serves as the quality control reviewer on an audit engagement:

Accepted Answer

A)  Must be an audit partner in the CPA firm that is performing the audit 
B)  May be either an audit partner in the CPA firm that is performing the audit or an experienced CPA associated with another CPA firm 
C)  Must be an experienced and knowledgeable CPA who is associated with a CPA firm other than the CPA firm that conducted the audit 
D)  Must be appointed by the PCAOB from a list of qualified accounting professionals 
A)  Must be an audit partner in the CPA firm that is performing the audit 
B)  May be either an audit partner in the CPA firm that is performing the audit or an experienced CPA associated with another CPA firm 
C)  Must be an experienced and knowledgeable CPA who is associated with a CPA firm other than the CPA firm that conducted the audit 
D)  Must be appointed by the PCAOB from a list of qualified accounting professionals

Question 15

Under the Sarbanes-Oxley Act,who may pursue an anti-retaliation claim against a company officer who allegedly has retaliated against a whistleblower?

Accepted Answer

Under the Sarbanes-Oxley Act (SOX), spec

Question 16

An audit partner has served as the lead audit partner on a client engagement for the past eight years.Which of the following is most likely to arise?

Accepted Answer

A)  The management participation threat 
B)  The familiarity threat 
C)  The self-review 
D)  All of the above 
A)  The management participation threat 
B)  The familiarity threat 
C)  The self-review 
D)  All of the above

Question 17

What is the "one-year waiting period" rule established by Sarbanes-Oxley? Do you believe that the scope of this rule is adequate?

Accepted Answer

The "one-year waiting period" rule estab

Question 18

Under the Sarbanes-Oxley Act,the decision whether to have a concurring audit partner on an audit engagement,in addition to the lead audit partner,is:

Accepted Answer

A)  A decision that solely is made by the audited company's Audit Committee 
B)  A decision that is made solely by the lead audit partner 
C)  A decision that is made jointly by the audited company's Audit Committee, in consultation with the lead audit partner 
D)  A compulsory provision in the law 
A)  A decision that solely is made by the audited company's Audit Committee 
B)  A decision that is made solely by the lead audit partner 
C)  A decision that is made jointly by the audited company's Audit Committee, in consultation with the lead audit partner 
D)  A compulsory provision in the law

Question 19

Should stockholders of a company be permitted to serve on a company's Board Directors? Should stockholders of a company be permitted to serve on a company's Audit Committee?

Accepted Answer

The issue of whether stockholders of a c

Question 20

Which the following is a "reportable event," as that term is defined in the Sarbanes-Oxley Act?

Accepted Answer

A)  A CPA firm partner successfully is sued a lender for failing to pay principal and interest on her home mortgage 
B)  A CPA firm audit partner is successfully prosecuted by local authorities for domestic violence 
C)  A CPA firm partner is sued by a former client for committing audit malpractice 
D)  All of the above 
A)  A CPA firm partner successfully is sued a lender for failing to pay principal and interest on her home mortgage 
B)  A CPA firm audit partner is successfully prosecuted by local authorities for domestic violence 
C)  A CPA firm partner is sued by a former client for committing audit malpractice 
D)  All of the above

What types of organizations are subject to the mandates of the Sarbanes-Oxley Act?

Do any provisions of the Sarbanes-Oxley Act pertain to tax accounting professionals?

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

The PCAOB is:

Under the Sarbanes-Oxley Act,what tax services may a CPA firm provide to a publicly-traded audit client? Does the performance of both tax services and auditing services to a client pose a threat to the auditor's objectivity?

Registration with the PCAOB requires CPA firms to:

If a publicly traded corporation misstated its accounting filings to the SEC,which of the following is given the right under the "clawback" provision of the Sarbanes-Oxley Act to reclaim profits earned by the company's CEO?

Who may serve on an Audit Committee?

Some commentator advocate in favor of audit firm rotation:

The PCAOB:

Provisions of the Sarbanes-Oxley Act apply to:

Under Sarbanes-Oxley,the CEO and CFO of publicly traded companies have to certify:

A publicly traded company files a Form 8K with the SEC:

The concurring auditor who serves as the quality control reviewer on an audit engagement:

Under the Sarbanes-Oxley Act,who may pursue an anti-retaliation claim against a company officer who allegedly has retaliated against a whistleblower?

An audit partner has served as the lead audit partner on a client engagement for the past eight years.Which of the following is most likely to arise?

What is the "one-year waiting period" rule established by Sarbanes-Oxley? Do you believe that the scope of this rule is adequate?

Under the Sarbanes-Oxley Act,the decision whether to have a concurring audit partner on an audit engagement,in addition to the lead audit partner,is:

Should stockholders of a company be permitted to serve on a company's Board Directors? Should stockholders of a company be permitted to serve on a company's Audit Committee?

Which the following is a "reportable event," as that term is defined in the Sarbanes-Oxley Act?

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

What types of organizations are subject to the mandates of the Sarbanes-Oxley Act?

Do any provisions of the Sarbanes-Oxley Act pertain to tax accounting professionals?

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

The PCAOB is:

Under the Sarbanes-Oxley Act,what tax services may a CPA firm provide to a publicly-traded audit client? Does the performance of both tax services and auditing services to a client pose a threat to the auditor's objectivity?

Registration with the PCAOB requires CPA firms to:

If a publicly traded corporation misstated its accounting filings to the SEC,which of the following is given the right under the "clawback" provision of the Sarbanes-Oxley Act to reclaim profits earned by the company's CEO?

Who may serve on an Audit Committee?

Some commentator advocate in favor of audit firm rotation:

The PCAOB:

Provisions of the Sarbanes-Oxley Act apply to:

Under Sarbanes-Oxley,the CEO and CFO of publicly traded companies have to certify:

A publicly traded company files a Form 8K with the SEC:

The concurring auditor who serves as the quality control reviewer on an audit engagement:

Under the Sarbanes-Oxley Act,who may pursue an anti-retaliation claim against a company officer who allegedly has retaliated against a whistleblower?

An audit partner has served as the lead audit partner on a client engagement for the past eight years.Which of the following is most likely to arise?

What is the "one-year waiting period" rule established by Sarbanes-Oxley? Do you believe that the scope of this rule is adequate?

Under the Sarbanes-Oxley Act,the decision whether to have a concurring audit partner on an audit engagement,in addition to the lead audit partner,is:

Should stockholders of a company be permitted to serve on a company's Board Directors? Should stockholders of a company be permitted to serve on a company's Audit Committee?

Which the following is a "reportable event," as that term is defined in the Sarbanes-Oxley Act?

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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