a) The Sarbanes-Oxley Act: Has not resulted in improvements in disclosure practices Eliminated the problem of information asymmetry Strengthened auditor independence rules Was the cause of the 2008 financial crisis b) The accounting profession is valued by society because: It guarantees financial performance It provides assurance It uses technology to promote efficiency It provides precise answers c) As a practical matter, trade-offs of qualitative characteristics occur in accounting because: Accountants don't have enough time to properly investigate all matters Accounting standards are incomplete Specific disclosures may not meet all users' needs Managers can't be trusted d) Two of the four enhancing qualitative characteristics of good accounting information are: Comparability, understandability Verifiability, relevance Relevance, representational faithfulness Accuracy, timeliness e) Which of the following criteria is not a requirement for recognition of an item in the financial statements? The item meets the definition of an element It is probable that future economic benefits from the item will flow to or from the entity The fair value of the item can be determined through an active market The item has a cost or value that can be measured reliably f) The IASB was formed to: Harmonize international accounting standards Promote international trade Consolidate international markets Enforce compliance with international standards g) The conceptual framework: Provides clear, detailed guidance on all possible accounting issues Does not help accountants deal with unusual transactions Helps standard setters create consistent and logical standards Is used by all companies reporting around the world h) Which of the following principles is not commonly found in codes of conduct for professional accountants? Professional competence Confidentiality Professional attire Objectivity i) The problem of information asymmetry: Can be solved by accounting information Is due to external users having better access to information than management Includes adverse selection and moral hazard Two of the above j) IFRS is an acronym for: O International Free Reporting Standards International Financial Required Standards International Financial Reporting Standards O International Fair Reporting Standards