Question 1

An integrated audit performed under the Sarbanes-Oxley Act requires that auditors report on:
 $$\begin{array} { c} 
& \text { Financial Statements} & \text { Internal Control} \
\text { A. } & \text { Yes } & \text { Yes } \
\text { B. } & \text { Yes } & \text { No } \
\text { C. } & \text { No } & \text { Yes } \
\text { D. } & \text { No } & \text { No }
\end{array}$$

Accepted Answer

An integrated audit performed under the Sarbanes-Oxley Act requires that auditors report on both the financial statements and internal control. The goal of an integrated audit is to provide an opinion on both the financial statements and internal control over financial reporting, and to ensure that the two are in alignment. Therefore, auditors must report on both aspects in an integrated audit, making option A the correct answer.

Question 2

An investor is considering investing in one of two companies.The companies have very similar reported financial position and results of operations.However,only one of the companies has its financial statements audited.
a.Describe what creates the demand for an audit in this situation.Include a discussion of how audited financial statements facilitate this investment transaction,and the effect of the audit on business risk and information risk.
b.Identify the potential consequences to the company of not having its financial statements audited.

Accepted Answer

The answer of An investor is considering investing in one...

Question 3

The Sarbanes-Oxley Act of 2002 made significant reforms for public companies and their auditors.
a.Describe the events that led up to the passage of the Act.
b.Describe the major changes made by the Act.

Accepted Answer

The answer of The Sarbanes-Oxley Act of 2002 made significant...

Question 4

Many people confuse the responsibilities of the independent auditors and the client's management with respect to audited financial statements.
a.Describe management's responsibility regarding audited financial statements.
b.Describe the independent auditors' responsibility regarding audited financial statements.
c.Evaluate the following statement:
 "If the auditors disagree with management regarding an accounting principle used in the financial statements the auditors should express their views in the notes to the financial statements."

Accepted Answer

The answer of Many people confuse the responsibilities of the...

Question 5

Match between columns
                        Premises: Government Accounting Standards Board. 
State Boards of Accountancy. 
Financial Accounting Standards Board. 
American Institute of Certified Public Accountants. 
Public Company Accounting Oversight Board. 
Federal Accounting Standards Advisory Board.

Accepted Answer

The Answer of Issue CPA certificates and Develop accounting standards is...

Quiz 1: The Role of the Public Accountant in the American Economy

The Sarbanes-Oxley Act of 2002 made significant reforms for public companies and their auditors. a.Describe the events that led up to the passage of the Act. b.Describe the major changes made by the Act.

Accountants are regulated by a variety of organizations.Match the following statements with the most directly related organizations.Organizations may be used once or not at all.