Review.docx - Review Section 404 of the Sarbanes-Oxley Act requires public companies to have an external auditor attest to their internal control over

Review.docx - Review Section 404 of the Sarbanes-Oxley Act...

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ReviewSection 404 of the Sarbanes-Oxley Act requires public companies to have an external auditor attest to their internal control over financial reporting.Answer: TRUETopic: SOXThe Sarbanes-Oxley Act established the Public Company Accounting Oversight Board (PCAOB). What are the PCAOB's primary functions? Answer: The PCAOB provides oversight for auditors of public companies; establishes auditing, attestation, and quality control standards for public company audits; and performs inspections of audit engagements as well as the quality controls at audit firms performing those audits. Topic: SOXThe PCAOB requires annual inspections of accounting firms that audit more than ten public companies.Answer: FALSETopic: SOXThe PCAOB considers International Standards on Auditing (ISA) when developing its standards.Answer: TRUETopic: SOX 3) Sarbanes-Oxley and the Securities and Exchange Commission restrict auditors from providingmany consulting services to their publicly traded audit clients. Which of the following is true for auditors of publicly traded companies?I. They are restricted from providing consulting services to privately held companies.II. There is no restriction on providing consulting services to non-audit clients. A) I onlyB) II onlyC) I and IID) Neither I nor IIAnswer: B9) Sarbanes-Oxley and the Securities and Exchange Commission restrict auditors from providingmany consulting services to their publicly traded audit clients. Answer: TRUE4) Assume the Public Company Accounting Oversight Board (PCAOB) identifies a violation during its inspection of a registered accounting firm. The PCAOB
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can enforcedisciplinary actionagainst the accountingfirmreport the matter tothe Securities andExchangeCommissionsuspend the license topractice of the CPAguilty of the violationYesYesYescan enforcedisciplinary actionagainst the accountingfirmreport the matter tothe Securities andExchangeCommissionsuspend the license topractice of the CPAguilty of the violationYesYesNocan enforcedisciplinary actionagainst the accountingfirmreport the matter tothe Securities andExchangeCommissionsuspend the license topractice of the CPAguilty of the violationYesNoNocan enforcedisciplinary actionagainst the accountingfirmreport the matter tothe Securities andExchangeCommissionsuspend the license topractice of the CPAguilty of the violationNoNoNo 5) The Sarbanes-Oxley Act established the Public Company Accounting Oversight Board (PCAOB). What are the PCAOB's primary functions?
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  • Spring '18
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