Question

The Sarbanes-Oxley Act of 2002 a) Requires the Public Company Accounting Oversight Board (PCAOB) be composed...

The Sarbanes-Oxley Act of 2002

a) Requires the Public Company Accounting Oversight Board (PCAOB) be composed of seven members.

b) Requires the Public Company Accounting Oversight Board (PCAOB) have CPAs for a majority of its members.

c) Changes rules on auditor independence, adopting a more flexible, principles-based approach rather than one based on prohibitions of certain types of non-audit services to audit clients

d) Mandates integrated audits for public companies   

                                                          


Which of the following statements would be least likely to be included in an audit engagement letter?

a) The fees for our services will be at our regular per diem rates plus out-of-pocket expenses.

b) We will provide you with a list of schedules and information needed by our staff during the audit.

C We will not disclose any advice provided under the terms of this engagement letter to third parties unless instructed to do so.

d) Our audit will be conducted with the objective of our expressing an opinion on the financial statements

According to the COSO Integrated Framework, reviews of business performance are an example of which of the five components of internal control?

  1. Risk assessment
  2. Control environment
  3. Monitoring
  4. Control activities

Homework Answers

Answer #1

1) Solution: It mandated integrated audits for public companies

Explanation: SOX Act mandated integrated audits for public companies

2) Solution: We will not disclose any advice provided under the terms of this engagement letter to third parties unless instructed to do so

Explanation: An audit engagement letter will display the objective and scope of the engagement, thus will lead to an expression of an opinion. It will usually be inclusive of information about fees and assistance the auditor will be needed from the client. An indication that advice shall not be shared with third parties will not be appropriate for an audit.

3) Solution: Control Activities

Explanation: Control Activities are indicator of performance indicator

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Public Company Accounting Oversight Board (PCAOB) was created as a result of the Sarbanes-Oxley Act....
The Public Company Accounting Oversight Board (PCAOB) was created as a result of the Sarbanes-Oxley Act. It has oversight and enforcement responsibilities over accounting firms in the United States. a. What is the mission of the PCAOB?b. b. Briefly summarize its responsibilities related to inspections. c. Briefly summarize its responsibilities related to enforcement.
True/ false 1. Section 404 of the Sarbanes Oxley - law requires the partner of the...
True/ false 1. Section 404 of the Sarbanes Oxley - law requires the partner of the CPA firm auditing a company to take responsibility for the company’s internal controls. 2. The name of the PCAOB is Public Company Accounting OverSight Board. 3. The Sarbanes Oxley act strengthened auditor independence by requiring audit committees to appoint the auditors. 4. Section 404 of the Sarbanes Oxley law requires that both the company management and the CPA firm auditing the company issue a...
Under the Sarbanes-Oxley Act, which requirement must an accounting firm that audits public companies meet? A....
Under the Sarbanes-Oxley Act, which requirement must an accounting firm that audits public companies meet? A. The firm cannot provide several nonaudit services, such as bookkeeping, to its audit clients B. The firm cannot audit a company for more than five years C. The firm cannot use any forms of advertising to obtain new clients D. The auditor must be retained by the CFO rather than the audit committee
The Sarbanes-Oxley Act of 2002 requires the CEO of a publicly traded company to be _____....
The Sarbanes-Oxley Act of 2002 requires the CEO of a publicly traded company to be _____. a) Maintain the confidentiality of the procedures used to construct and report financial statements. b) Certify the financial reports that are sent to the Securities and Exchange Commission. c) Pursue interests that result in large profits for them and large losses for shareholders d) Supervise the audit of the corporation and witness the audit report e) Render an unbiased (independent) opinion regarding the company's...
1.Which of the following is the amount the borrower must pay back to the bondholders at...
1.Which of the following is the amount the borrower must pay back to the bondholders at maturity? A. present value B. principal amount C. stated interest value D. market value 2. Which of the following is a true statement regarding the effect of a stock split and stock dividend on total assets or liabilities? A. Both a stock split and a stock dividend will increase total liabilities. B. A stock split will increase total assets, but a stock dividend will...
In a bizarre twist to a bizarre story, on October 22, 2013, Deloitte agreed to pay...
In a bizarre twist to a bizarre story, on October 22, 2013, Deloitte agreed to pay a $2 million penalty to settle civil charges—brought by the PCAOB—that the firm violated federal audit rules by allowing its former partner to continue participating in the firm’s public company audit practice, even though he had been suspended over other rule violations. The former partner, Christopher Anderson, settled with the PCAOB in 2008 by agreeing to a $25,000 fine and a one-year suspension for...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT