Question Completion Status: QUESTION 23 Which is NOT a provision of Sarbanes-Oxley? O A. Auditors of public companies are under the scrutiny of the Public Company Accounting Oversight Board. O B. Those who commit securities fraud may be sentenced to 25 years in prison. O C. Accounting firms are allowed to provide both auditing services and a full range of consulting services to their public company clients. O D. Public companies must issue an internal control report evaluated by an outside auditor. QUESTION 24 A check was written by a business for $205, but was recorded in the business' books as $502. How would this error be recorded on the bank reconciliation? (Hint: what has to be done to correct the error and who needs to correct it?) O A. A deduction on the book side O B. An addition on the book side O C. An addition on the bank side O D.A deduction on the bank side Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers BUS communication acc 101 practice fin.. Take Test: ACC 101.

Question Completion Status: QUESTION 23 Which is NOT a provision of Sarbanes-Oxley? O A. Auditors of public companies are under the scrutiny of the Public Company Accounting Oversight Board. O B. Those who commit securities fraud may be sentenced to 25 years in prison. O C. Accounting firms are allowed to provide both auditing services and a full range of consulting services to their public company clients. O D. Public companies must issue an internal control report evaluated by an outside auditor. QUESTION 24 A check was written by a business for $205, but was recorded in the business' books as $502. How would this error be recorded on the bank reconciliation? (Hint: what has to be done to correct the error and who needs to correct it?) O A. A deduction on the book side O B. An addition on the book side O C. An addition on the bank side O D.A deduction on the bank side Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers BUS communication acc 101 practice fin.. Take Test: ACC 101.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter2: The Auditor’s Responsibilities Regarding Fraud And Mechanisms To Address Fraud: Regulation And Corporate Governance

Section: Chapter Questions

Problem 19CYBK

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24. Which of the following must be done If a resolution has been passed to remove the auditor ? i. Notify the Regulatory Authorities ii. Auditors must deposit statement of circumstances at company's registered office within 21 days of ceasing to hold the office iii. Auditors must deposit statement of circumstances at company's registered office within 14 days of ceasing to hold the office iv. Statement of circumstances must be sent to regulatory authority. a. Only i, ii and iv b. Only i and ii c. Only i , iii and iv d. Only i and iii
The Sarbanes-Oxley Act a. created the Private Company Accounting Board. b. allows accountants to audit and to perform any type of consulting work for a public company. c. stipulates that violators of the act may serve 20 years in prison for securities fraud. d. requires that an outside auditor must evaluate a public company’s internal controls.
25. An audit firm has been asked by a client to attend a meeting between the client and its prospective investors in order to discuss the company’s financial performance in the last year. According to the Code of Professional Ethics for Accountants, what type of threat to objectivity will be created if the auditor attends this meeting? a. Advocacy threat b. Self review threat c. Self-interest threat d. Intimidation threat
Which of the following statements is true of the Sarbanes−Oxley Act? A. All private and foreign companies must issue an internal control report evaluated by an outside auditor. B. Accounting firms are allowed to provide both auditing services and a full range of consulting services to their public company clients. C. Those who commit securities fraud must be sentenced to 10 years in prison. D. The Public Company Accounting Oversight Board oversees the work of auditors of public companies.
The Sarbanes-Oxley Act Created the Private Company Accounting Board. Allows accountants to audit and to perform any type of consulting work for a public company. Stipulates that violators of the act may serve 20 years in prison for securities fraud. Requires that an outside auditor must evaluate a public company’s internal controls.
Enron corporation: accounting fraud what five recommendations you would suggest to strengthen the independent audit function following the Enron sandal? what responsibilities, if any, do audit firm have with regard to the quarterly financial statements of their client?
Question 2- PART AAuditors can only control the level of detection risk as the inherent risk andthe control risk are out of auditors’ control. PART A Requirement:Discuss the differences between the three types of risks with an explanation of why auditors can only control the detection risk. PART B You are currently planning the audit of your client, DEF plc. Its year end is 31December 2019 and the forecast profit before tax is £15.5 million. DEF has a small internal audit (IA) department. During the year, IA started a programmeof physically verifying the company’s assets and comparing the results to the non-current assets register, as this type of reconciliation had not occurred for some time. To date only 15% of assets have had their existence confirmed as IA has experienced significant staff shortages and several members of the current IA team are new to DEF plc. Inventory is held in six locations and on 25 and 26 December a full inventory count will be held with adjustments for…
27. An audit firm has been asked by a client to attend a meeting between the client and its bank where a new bank loan application is to be discussed. According to the Code of Professional Ethics for Accountants, what type of threat to objectivity will be created if the auditor attends this meeting? a. Self interest threat b. Intimidation threat c. None of the options d. Self review threat
Question 27 When completing the audit of internal controls for a public company the PCAOB requires auditors to audit internal controls over: Operations Compliance with regulations Financial Reporting All of the answers shown
Chapter 13: Overall Audit Strategy and Audit Program The following are two situations, all involving non-public companies, in which the auditor is required to develop an audit strategy: 1. The client has inventory at approximately 50 locations in a three state region. This inventory is difficult to count and can be observed only by traveling by car. The internal controls over acquisitions, cash disbursements, and perpetual records are considered effective. This is the fifth year that you have done the audit, and audit results in the past have always been excellent. 2. This is the first year of an audit of a medium sized company that is considering selling its business because of severe under financing. A review of the acquisition and payment cycle indicates that controls over cash disbursements are excellent but controls over acquisitions cannot be considered effective. The client lacks receiving reports and a policy as to the proper timing to record acquisitions. When you…
uestion:1 A privately held company recently outsourced its information processing system to a CPA who also has been asked to conduct the year-end financial statement audit. Management accepts responsibility for the information processed by the CPA and the CPA will not assume the role of an employee in any way. The statement pertains to AICPA code of conduct rule: A. Commissions and Referral Fees C. Independence B. Confidential Client Information D. Integrity and Objectivity