Question
1) Under the Sarbanes-Oxley Act of 2002, the Public Company Accounting Oversight Board (PCAOB) established rules relating to the preparation of audit reports for issuers
1) Under the Sarbanes-Oxley Act of 2002, the Public Company Accounting Oversight Board (PCAOB) established rules relating to the preparation of audit reports for issuers in which of the following?
a.Auditing
b.Quality control
c.Ethics
d.Independence
e.All of the above
2) As a Certified Management Accountant, Donna is bound by the standards of ethical conduct issued by the Institute of Management Accountants. Her company currently produces a component used in manufacturing several of the firms products. In a report evaluating the desirability of buying the component instead, Donna compared the expected purchase price of the component to the cost of materials contained in the component. Select the correct statement from the following.
a.Donna may have violated the confidentiality standard if she provided any confidential information about the firms costs to outside vendors.
b.Donna may have violated the competence standard because her report was incomplete in that it failed to consider the other costs required to manufacture the component in-house.
c.Donna may have violated the objectivity/credibility standard because she failed to disclose fully all relevant information that could influence this outsourcing decision.
d.All of the above are correct.
3) With the enactment of the Sarbanes-Oxley Act of 2002, all public companies are now required by the SEC to disclose in their annual reports whether or not their chief financial executives are covered by a company-imposed:
a.Board of Directors subcommittee.
b.Human Resource guidelines.
c.Code of Ethics.
d.All of the above.
e.None of the above.
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