Section 104 of SOX Title I, "Inspections of Registered Public Accounting Firms," dictates that: Show
public accounting firms performing audits on issuers must register with the PCAOB. the PCAOB has the authority to set, amend, update, and modify auditing, quality control, and ethics standards. the PCAOB has the mandate and authority to conduct compliance inspections of each registered public accounting firm. the PCAOB may investigate any act or practice, or omission to act, by a registered public accounting firm that may violate any provision of the Sarbanes-Oxley Act, PCAOB rules, securities laws, and professional standards. Section 105 of SOX Title I, "Investigations and Disciplinary Proceedings," dictates that: public accounting firms performing audits on issuers must register with the PCAOB. the PCAOB has the authority to set, amend, update, and modify auditing, quality control, and ethics standards. the PCAOB has the mandate and authority to conduct compliance inspections of each registered public accounting firm. the PCAOB may investigate any act or practice, or omission to act, by a registered public accounting firm that may violate any provision of the Sarbanes-Oxley Act, PCAOB rules, securities laws, and professional standards. Section 102 of SOX Title I, "Registration with the Board," dictates that: public accounting firms performing audits on issuers must register with the PCAOB. the PCAOB has the authority to set, amend, update, and modify auditing, quality control, and ethics standards. the PCAOB has the mandate and authority to conduct compliance inspections of each registered public accounting firm. the PCAOB may investigate any act or practice, or omission to act, by a registered public accounting firm that may violate any provision of the Sarbanes-Oxley Act, PCAOB rules, securities laws, and professional standards. Section 103 of SOX Title I, "Auditing, Quality Control, and Independence Standards and Rules," dictates that: public accounting firms performing audits on issuers must register with the PCAOB. the PCAOB has the authority to set, amend, update, and modify auditing, quality control, and ethics standards. the PCAOB has the mandate and authority to conduct compliance inspections of each registered public accounting firm. the PCAOB may investigate any act or practice, or omission to act, by a registered public accounting firm that may violate any provision of the Sarbanes-Oxley Act, PCAOB rules, securities laws, and professional standards. Upgrade to remove ads Only SGD 41.99/year
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Get faster at matching terms Terms in this set (48)The Public Company Accounting Oversight Board: a) is a quasi-governmental organization that has legal authority to set auditing standards for audits of public companies. Operational auditing
is oriented primarily towards: c) efficiency and future improvements to accomplish the goals of management. Which of the
following best describes the general character of the section of the "Principles Underlying an Audit of Financial Statements," titled "Performance"? c) Criteria for audit planning and evidence gathering. Which of the following statements best describes management's and the external auditor's respective levels of responsibility for a public company's financial statements? b)Management has the primary responsibility to ensure that the company's financial statements are prepared in accordance with GAAP, and the auditor provides a guarantee that the statements are free of material misstatement. Which of the following best describes the relationship between business objectives, strategies, processes, controls, and transactions? To achieve its objectives, a business formulates strategies and implements processes, which are carried out through business transactions. The entity's information and internal control systems must be designed to ensure that the transactions are properly executed, captured, and processed. Which of the following would be considered a nonattest assurance service engagement? Expressing an opinion about the reliability of an entity's financial statements. Ionly. Neither I nor II. - these are both examples of attest assurance services. Which of the following is correct regarding the types of audits over
which the ASB and the PCAOB, respectively, have standard-setting authority in the United States? Nonpublic company audits; Public company audits Which of the following best places the events of the last decade in proper sequence? Increased consulting services to auditees, Enron and other scandals, Sarbanes-Oxley Act, prohibition of most consulting work for auditees, establishment of PCAOB. Which of the following is not a part of the role of internal auditors? b)Providing reports on the reliability of financial statements to investors and creditors. Most large corporations typically have a large group of __________. internal auditors Headed by the Auditor General, the work of __________ includes compliance, operational, and financial audits. d)governmental auditors Which organization has oversight and enforcement authority over the Public Company Accounting Board (PCAOB) and its decisions? SEC The Sarbanes-Oxley Act of 2002 a)Requires the Public Company Accounting Oversight Board (PCAOB) to be composed of seven members. d)Mandates integrated audits for public companies. Audit committees of public companies consist of a)Directors who are responsible for establishing and
maintaining effective internal control. b)Independent directors. Audits of which of the following organizations are subject to the Sarbanes-Oxley Act? A) All public companies. A) All public companies. As specified in Title II of the Sarbanes Oxley Act (SOX), which of the following nonaudit services to audit clients are not prohibited from being performed by a registered public accounting firm if preapproved by the audit committee and disclosed to the SEC? Tax compliance services. Which of the following statements regarding the Public Company Accounting Oversight Board (PCAOB) is correct? a)Public accounting firms must register with the PCAOB before performing audits of public companies. a)Public accounting firms must register with the PCAOB before performing audits of public companies. A series of business and related auditing failures led to the passage of the Sarbanes-Oxley Act (2002). TRUE The primary audit context with which an auditor is concerned is the auditee's industry or business. TRUE The audit committee generally includes senior executives of the organization. FALSE A financial statement audit is generally organized based on the five basic business processes or cycles. TRUE One of the five basic business processes is the warehousing cycle. FALSE The ASB's auditing standards contain a preface that includes Principles Underlying an Audit Conducted in Accordance with GAAS. TRUE PCAOB auditing standards must be followed on all financial statement audits performed in the U.S. FALSE a financial statement audit must be conducted based on GAAP. FALSE 9) Generally, the financial statements of U.S. companies must be prepared based on GAAP. TRUE PCAOB auditing standards must be followed on all audits of public companies' financial statements. TRUE The Audit Committee consists of: C) members of the Board of Directors. 12)
What organization is responsible for setting auditing standards for audits of publicly-traded companies in the U.S.? D) PCAOB 13) The Public Company Accounting Oversight Board's role is to: B) oversee the auditors of public companies in order to protect the interests of investors. The authoritative body designed to promulgate standards concerning a CPA's association with audited financial statements of an entity that is required to file financial statements with the SEC is the: C) public company accounting oversight board. 15) The auditor must be independent of the auditee unless: D) none of the above—the auditor cannot lack independence. Which principle of the Principles Underlying an Audit Conducted in Accordance with GAAS describes where auditors are required to plan the work and properly supervise any assistants? Responsibilities Which of the following best describes the general character of the three principles that are listed in the Performance section of the Principles Underlying an Audit Conducted in Accordance with GAAS? C) Auditors' responsibilities in performing an effective audit. The Responsibilities section of the Principles Underlying an Audit Conducted in
Accordance with GAAS states that auditors are responsible for having appropriate competence and: C) capabilities to perform the audit. The Reporting
section of the Principles Underlying an Audit Conducted in Accordance with GAAS requires that the report, "states whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework." This passage requires: B) an opinion by the auditor. Because of the risk of material misstatement, an audit of financial statements in accordance with generally accepted auditing standards should be planned and performed with an attitude of: C) professional skepticism. The accuracy of
information included in footnotes accompanying the audited financial statements issued by a company whose shares are traded on a stock exchange is the primary responsibility of: C) the company's management. The primary responsibility for the adequacy of disclosures
in the financial statements of a publicly held company rests with the: B) management of the company. The largest public accounting firms typically are structured as: C) limited liability partnerships. Typically, an external auditor first gets supervisory experience at what level of authority? B) Senior. 25) An "in-charge" auditor typically holds the rank of: B) senior 26) Which of the following best describes the concept of risk assessment on which auditors can provide independent assurance? A) The risk that financial statements are misstated because of fraud. B) The risk that financial statements are misstated because of error or fraud. ... Forensic audits include all of the following except: B) manufacturers' assertions about product quality. A typical objective of an operational audit is for the auditor to: C) make recommendations for improving performance. Governmental auditing often extends beyond examinations leading to the expression of an opinion on the fairness of financial presentation and includes audits of efficiency, effectiveness, and: D) compliance. External auditors are referred to as "external"
because: C) they are not employees of the entity being audited. The Reporting section of the Principles Underlying an Audit Conducted in Accordance with GAAS requires that the report, "states whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework" This passage requires: an opinion by the auditor. Sets with similar termsAuditing Final - CH 29 terms shivani071 Audit Ch 215 terms kelshuff Chapter 220 terms alexisweber23 Audit Chapter 2 MC9 terms Samantha_Peters Sets found in the same folderch648 terms erin_jones48 Auditing Chapter 1054 terms conner_geist Chapter 334 terms crraffi Auditing Chapter 683 terms justin_barkley6 Other sets by this creatorAIS EXAM 148 terms fernanda_ferraz7 GOV & NFP90 terms fernanda_ferraz7 F150 terms fernanda_ferraz7 ASSETS - Part II46 terms fernanda_ferraz7 Other Quizlet setsfire 1 finals131 terms layon08 Sub-Saharan Africa22 terms abakas10 Related questionsQUESTION If you want to understand the company's ability to generate enough cash to pay its short and long term debts, you would review which financial report? 2 answers QUESTION The primary goal of "Differentiation Strategy" is make your firm's products appear to be different than your competitors' products. (t/f) 3 answers QUESTION in menu engineering a dog is an item with: 15 answers QUESTION The deficiency of the "traditional" Time-Based-Competition concepts is: They tend to overlook 11 answers What is the role of the Public Company Accounting Oversight Board PCAOB )? How does the PCAOB provide oversight of audit firms?The Public Company Accounting Oversight Board (PCAOB) is a Congressionally-established nonprofit that assesses audits of public companies in the United States to protect investors' interests. The PCAOB also oversees broker-dealer audits, including compliance reports filed under federal securities laws.
What is the role of the Public Company Accounting Oversight Board PCAOB )?The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and further the public interest in the preparation of informative, accurate, and independent audit reports.
What is the role of the SarbanesThe United States Public Company Accounting Oversight Board (PCAOB) is a private-sector, non-profit corporation, created by the Sarbanes-Oxley Act of 2002, to oversee the auditors of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, ...
How does the PCAOB provide oversight of audit firms?The PCAOB's mission is to oversee the auditors of public companies, protect the interests of investors, and further the public interest in the preparation of informative, accurate, and independent audit reports. The PCAOB does this through its standards setting, inspections, enforcement, and outreach programs.
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