Question 1

With respect to accounting services, the General Agreement on Trade in Services (GATS)

Accepted Answer

A)  was enacted in the Uruguay Round of GATT negotiations, and it resulted in the free trade in accounting services. 
B)  efforts are being concentrated on tariff barriers to the cross-border trade in services. 
C)  governments are all required to use the same reciprocity rules. 
D)  wants to ensure that quality of service is not compromised. 
A)  was enacted in the Uruguay Round of GATT negotiations, and it resulted in the free trade in accounting services. 
B)  efforts are being concentrated on tariff barriers to the cross-border trade in services. 
C)  governments are all required to use the same reciprocity rules. 
D)  wants to ensure that quality of service is not compromised. D

Question 2

According to the reciprocity agreement between the United States and Canada,

Accepted Answer

A)  Canadian chartered accountants must pass the Uniform CPA exam in order to practice in the United States. 
B)  Canadians and Americans who are certified in their own country can practice in the other country by registering with the proper accounting board and paying a one-time fee. 
C)  any accountant, even one who is not certified in either the United States or Canada, can practice in the other country by passing a special exam. 
D)  a special exam has been developed which focuses on the differences between Canada and the United States. 
A)  Canadian chartered accountants must pass the Uniform CPA exam in order to practice in the United States. 
B)  Canadians and Americans who are certified in their own country can practice in the other country by registering with the proper accounting board and paying a one-time fee. 
C)  any accountant, even one who is not certified in either the United States or Canada, can practice in the other country by passing a special exam. 
D)  a special exam has been developed which focuses on the differences between Canada and the United States. D

Question 3

Home countries occasionally have laws that extent to subsidiaries of their domestic companies that contradict the laws of host countries of the subsidiaries.
True

Accepted Answer

A) True 
 B)False  True

Question 4

The identity of a candidate for the auditing profession is important. For example,

Accepted Answer

A)  Mexico has a strict requirement that one must be a Mexican citizen or be fluent in Spanish in order to practice in Mexico. 
B)  the U.K. requires that candidates be a member of one of the Chartered Institutes or the Chartered Association of Certified Accountants. 
C)  France does not allow candidates from other EU member countries to practice in France. 
D)  the Dutch are short on good accountants, so their requirements are not too strict. 
A)  Mexico has a strict requirement that one must be a Mexican citizen or be fluent in Spanish in order to practice in Mexico. 
B)  the U.K. requires that candidates be a member of one of the Chartered Institutes or the Chartered Association of Certified Accountants. 
C)  France does not allow candidates from other EU member countries to practice in France. 
D)  the Dutch are short on good accountants, so their requirements are not too strict.

Question 5

Auditors are generally appointed by

Accepted Answer

A)  shareholders at the annual meeting 
B)  local country government 
C)  management 
D)  UN 
A)  shareholders at the annual meeting 
B)  local country government 
C)  management 
D)  UN

Question 6

EU's Fifth Directive permits auditors to operate without restriction throughout the European Union.
False

Accepted Answer

A) True 
 B)False

Question 7

In terms of educational experience to become a certified accountant,

Accepted Answer

A)  the French rely on the apprenticeship approach. 
B)  the United States use university training as a prerequisite for certification. 
C)  the Dutch do not rely very much on university training of accountants. 
D)  the British have a dual approach that uses different styles of universities to train accountants. 
A)  the French rely on the apprenticeship approach. 
B)  the United States use university training as a prerequisite for certification. 
C)  the Dutch do not rely very much on university training of accountants. 
D)  the British have a dual approach that uses different styles of universities to train accountants.

Question 8

Evidence of IFAC global effectiveness problems in enforcing audit standards is

Accepted Answer

A)  a restructuring plan 
B)  the take-over of the duties by the OECD 
C)  the take-over of the duties by court at the Hague 
D)  SEC rejection of IAS standards 
A)  a restructuring plan 
B)  the take-over of the duties by the OECD 
C)  the take-over of the duties by court at the Hague 
D)  SEC rejection of IAS standards

Question 9

The quality of the auditing profession in each country is a function of

Accepted Answer

A)  the reputation of the accounting and auditing profession 
B)  the quality of the educational system 
C)  the certification process 
D)  all of the above 
A)  the reputation of the accounting and auditing profession 
B)  the quality of the educational system 
C)  the certification process 
D)  all of the above

Question 10

Companies that switch from small or medium audit firms to more international auditors often give the reason of

Accepted Answer

A)  the need to have one firm auditing all companies within one group 
B)  better brand recognition 
C)  superior low balling 
D)  side payments 
A)  the need to have one firm auditing all companies within one group 
B)  better brand recognition 
C)  superior low balling 
D)  side payments

Question 11

Based on Messier et al's (2005) definition, successful auditing has two requirements: an objective (independent), competent person and quantifiable (and verifiable information).
False

Accepted Answer

A) True 
 B)False

Question 12

In terms of the size of the profession,

Accepted Answer

A)  the Anglo-Saxon tradition generates the most accountants, but not the most per capita. 
B)  the United States is the largest in the world in number of accountants and accountants per capita. 
C)  the British do not have the most accountants in the world, but they have the most per capita. 
D)  Japan is more similar to the Anglo-Saxon countries than Germany in terms of the number of accountants per capita. 
A)  the Anglo-Saxon tradition generates the most accountants, but not the most per capita. 
B)  the United States is the largest in the world in number of accountants and accountants per capita. 
C)  the British do not have the most accountants in the world, but they have the most per capita. 
D)  Japan is more similar to the Anglo-Saxon countries than Germany in terms of the number of accountants per capita.

Question 13

The IFAC is active in all of the following areas except

Accepted Answer

A)  education 
B)  ethics 
C)  metric standards 
D)  information technology 
A)  education 
B)  ethics 
C)  metric standards 
D)  information technology

Question 14

IFAC's 2000 initiative is

Accepted Answer

A)  supposed to raise audit fees 
B)  designed to raise global audit standards 
C)  ease the tax collection problems on MNEs 
D)  likely to increase Internet E-commerce 
A)  supposed to raise audit fees 
B)  designed to raise global audit standards 
C)  ease the tax collection problems on MNEs 
D)  likely to increase Internet E-commerce

Question 15

In Germany, the government certifies the auditor.
True

Accepted Answer

A) True 
 B)False

Question 16

A major development in the global accounting firms in recent years has been the

Accepted Answer

A)  decision on the part of the largest firms to concentrate in specific geographic areas rather than attempt to service all markets. 
B)  merger of some of the largest accounting firms. 
C)  slowdown in merger activity. 
D)  all of the above. 
A)  decision on the part of the largest firms to concentrate in specific geographic areas rather than attempt to service all markets. 
B)  merger of some of the largest accounting firms. 
C)  slowdown in merger activity. 
D)  all of the above.

Question 17

International audits have a challenge because local business practices pay expenses with cash.
True

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not a key dimension to auditing?

Accepted Answer

A)  a competent, independent person. 
B)  quantifiable and verifiable information. 
C)  established criteria (auditing standards). 
D)  the existence of a global auditing standards board that will harmonize auditing practices. 
A)  a competent, independent person. 
B)  quantifiable and verifiable information. 
C)  established criteria (auditing standards). 
D)  the existence of a global auditing standards board that will harmonize auditing practices.

Question 19

Reciprocity is a problem for international audit firms.
True

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not a major reason for the global expansion of public accounting firms?

Accepted Answer

A)  to service clients better. 
B)  to provide a line of defense against global competitors. 
C)  to increase the client base outside of the home market. 
D)  to focus on the industrial instead of developing countries where the accounting tradition is already well-established. 
A)  to service clients better. 
B)  to provide a line of defense against global competitors. 
C)  to increase the client base outside of the home market. 
D)  to focus on the industrial instead of developing countries where the accounting tradition is already well-established.

With respect to accounting services, the General Agreement on Trade in Services (GATS)

According to the reciprocity agreement between the United States and Canada,

Home countries occasionally have laws that extent to subsidiaries of their domestic companies that contradict the laws of host countries of the subsidiaries. True

The identity of a candidate for the auditing profession is important. For example,

Auditors are generally appointed by

EU's Fifth Directive permits auditors to operate without restriction throughout the European Union. False

In terms of educational experience to become a certified accountant,

Evidence of IFAC global effectiveness problems in enforcing audit standards is

The quality of the auditing profession in each country is a function of

Companies that switch from small or medium audit firms to more international auditors often give the reason of

Based on Messier et al's (2005) definition, successful auditing has two requirements: an objective (independent), competent person and quantifiable (and verifiable information). False

In terms of the size of the profession,

The IFAC is active in all of the following areas except

IFAC's 2000 initiative is

In Germany, the government certifies the auditor. True

A major development in the global accounting firms in recent years has been the

International audits have a challenge because local business practices pay expenses with cash. True

Which of the following is not a key dimension to auditing?

Reciprocity is a problem for international audit firms. True

Which of the following is not a major reason for the global expansion of public accounting firms?

International Accounting and International Business

International Accounting Patterns, Culture and Development

Comparative International Financial Accounting I

Comparative International Financial Accounting II

International Financial Statement Analysis

International Transparency and Disclosure

International Accounting Standards and Global Convergence

International Business Combinations, Goodwill and Intangibles

International Segment Reporting

Foreign Currency Transactions and Translation

International Accounting for Price Changes

Corporate Governance and Control of Global Operations

Foreign Exchange Risk Management

International Budgeting and Performance Evaluation

International Taxation Issues

Filters

Exam 15: International Auditing Issues

With respect to accounting services, the General Agreement on Trade in Services (GATS)

According to the reciprocity agreement between the United States and Canada,

Home countries occasionally have laws that extent to subsidiaries of their domestic companies that contradict the laws of host countries of the subsidiaries. True

The identity of a candidate for the auditing profession is important. For example,

Auditors are generally appointed by

EU's Fifth Directive permits auditors to operate without restriction throughout the European Union. False

In terms of educational experience to become a certified accountant,

Evidence of IFAC global effectiveness problems in enforcing audit standards is

The quality of the auditing profession in each country is a function of

Companies that switch from small or medium audit firms to more international auditors often give the reason of

Based on Messier et al's (2005) definition, successful auditing has two requirements: an objective (independent), competent person and quantifiable (and verifiable information). False

In terms of the size of the profession,

The IFAC is active in all of the following areas except

IFAC's 2000 initiative is

In Germany, the government certifies the auditor. True

A major development in the global accounting firms in recent years has been the

International audits have a challenge because local business practices pay expenses with cash. True

Which of the following is not a key dimension to auditing?

Reciprocity is a problem for international audit firms. True

Which of the following is not a major reason for the global expansion of public accounting firms?

International Accounting and International Business

International Accounting Patterns, Culture and Development

Comparative International Financial Accounting I

Comparative International Financial Accounting II

International Financial Statement Analysis

International Transparency and Disclosure

International Accounting Standards and Global Convergence

International Business Combinations, Goodwill and Intangibles

International Segment Reporting

Foreign Currency Transactions and Translation

International Accounting for Price Changes

Corporate Governance and Control of Global Operations

Foreign Exchange Risk Management

International Budgeting and Performance Evaluation

International Taxation Issues

Filters