Multiple Choice Questions
1. Which of the following is a name for the Sarbanes-Oxley Act of 2002?
a. Public Accounting Reform and Investor Protection Act of 2002.
b. White Collar Crime Penalty Enforcement Act of 2002.
c. Corporate and Criminal Fraud Accountability Act of 2002.
d. All of the above.

2. Which of the following describes the duties of the Department of Corporate Finance?
a. Issues investigative subpoenas.
b. Regulates broker-dealers such as the National Association of Security Dealers.
c. Reviews and monitors accounting reports.
d. Monitors the accounting profession including groups that contribute to generally accept accounting principles (GAAP).
e. Regulates investment companies and investment advisers.
f. b and c.
g. All of the above.

3. Which of the following rule-making entities is not affected by the Sarbanes-Oxley Act of 2002?
a. The PCAOB.
b. The Securities and Exchange Commission.
c. The Securities Act of 1934.
This can’t be the correct answer because it is not really a rule-making entity. But it was very much affected by SOX.
d. The Federal Trade Commission.

4. Which of the following must be reported to a company’s audit committee?
a. All material written communications between the audit firm and the client.
b. All material verbal communications between the audit firm and the client.
Only verbal communications relating to alternative accounting treatments must be reported.
c. All verbal discussions relating to alternative accounting treatments.
d. All critical accounting policies used in the audit.
e. All of the above.
f. a, b, and c.
g. a, c, and d.

5. Which of the following is a nonaudit service that auditors are prohibited from providing to a client contemporaneously with an audit?
a. Financial information system design.
b. Actuarial services.
c. Bookkeeping services.
d. Investment advice.
e. Human resources.
f. None of the above.
g. All of the above.