1. The improvement of corporate governance and financial reporting by SOX should add the following benefits except:

a.Improved investor confidence.

b.Increased firm value.

c.Decreased cost of capital.

1.4 The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) established the Financial Stability Oversight Council. The purposes of the Council includes the following items except:

2. To promote market discipline, by eliminating expectations on the part of shareholders, creditors, and counterparties of such companies that the Government will shield them from losses in the event of failure

a. To respond to emerging threats to the stability of the United States financial system

b. To identify those corporations who ongoing solvency is so critical to national security that they are classified as too big to fail

c. To identify risks to the financial stability of the United States that could arise from the material financial distress or failure, or ongoing activities, of large, interconnected bank holding companies or nonbank financial companies

d. Increased audit fees.

3. Which of the following statements is true?

a. An external audit can be performed by anyone with an accounting degree.

b. An external audit is required for any company with annual revenues greater than $5 million.

c. An external audit is designed to prove that the financial statements are wrong.

d. An external audit must be performed by an independent, public accounting firm.

4. The PCAOB shall conduct a continuing program of inspections to assess the degree of compliance of each registered public accounting firm with SOX, the rules of the PCAOB, the rules of the Commission, or professional standards, in connection with its performance of audits, issuance of audit reports, and related matters involving issuers. Inspections required by this section shall be conducted:

a.Annually with respect to each registered public accounting firm that regularly provides audit reports for more than 500 issuers.

b.Annually with respect to each registered public accounting firm that regularly provides audit reports for more than 200 issuers.

c.Annually with respect to each registered public accounting firm that regularly provides audit reports for more than 100 issuers.

d. Not less frequently than once every 3 years with respect to each registered public accounting firm that regularly provides audit reports for 200 or fewer issuers.