Assignment 1 (2016 Sep 27 Due)
Chapter 1
1、 The Sarbanes-Oxley Act of 2002 created the Public Company Accounting Oversight Board. Explain the major responsibilities of this board.

The Public Company Accounting Oversight Board, created in 2002, has the following responsibilities:
1. Auditing, attestation, quality control, ethics, and independence standards relating to the preparation of audit reports for SEC registrants.
2. Register public accounting firms that audit public companies.
3. Perform inspections of the practices of registered firms.
4. Conduct investigations and disciplinary proceedings of registered firms.
5. Sanction registered firms.

2、 Multiple-choice question (Please check the most appropriate answer)

1) The form of attestation that provides the highest form of assurance is a ( ):
a) Assembly
b) Compilation
c) Review
d) Examination X

2) Audits of financial statements include an expression of a conclusion about which of the following financial statement characteristics?
a) Governance
b) Reliability X
c) Relevance
d) Timeliness

3) A review of a company's financial statements by a CPA firm:
a) Is significantly less in scope than an audit and results in a report which provides positive assurance, although not absolute assurance.
b) Is similar in scope to an audit and adds similar credibility to the statements.
c) Concludes with the issuance of a report expressing the CPA's opinion as to the fairness of the statements. X
d) Is designed to provide limited assurance.

4)The Sarbanes Oxley Act included provisions establishing the:
a) Auditing Standards Board.
b) Congressional Auditing Overview Board.
c) Public Company Accounting Oversight Board. X
d) Securities and Exchange Commission.

5) In performing a financial statement audit, which of the following would an auditor be least likely to consider?
a) Internal control
b) Compliance with GAAP
c) Fairness of the...

Similar Essays