According to the AICPA Code of Professional Conduct, Article IV, which of the following is correct regarding objectivity and independence?

a. Objectivity and independence apply to all services rendered.

b. Independence applies to all services rendered, but objectivity applies to attestation services only (e.g., audits, special reports, and reviews).

c. Objectivity applies to all services rendered, but independence applies to attestation services only (e.g., audits, special reports, and reviews).

d. None of the above

According to Rule 101 0f the AICPA Code of Professional Conduct, independence will be impaired if a firm does which of the following?

I. Reports to the board on behalf of management

II. Makes operational, but not financial decisions for the client

III. Performs nonattest services for an audit client

a. I and III only

b. II and III only

c. I, II, and III

d. I and II only

The first three principles (articles) of the AICPA's code of conduct are responsibilities, public interest, and:

a. Independence

b. Objectivity

c. Integrity

d. Due care

Audit firms need to retain working papers relating to their audit clients for at least:

I. Seven years if the client is publicly held

II. Five years if the client is not publicly held

a. I only

b. II only

c. Both I and II

d. Neither I nor II

According to OCAOB, which of the following must be rotated off an audit engagement every five years?

I. Lead partner

II. Reviewing partner

a. I only

b. II only

c. Both I and II

d. Neither I nor II

According to the Sarbanes-Oxley Act of 2002, auditors are required to attest to management's assessment of the effectiveness of internal control over financial reporting in a:

I. 10-K Annual Report

II. 10-Q Quarterly Report

a. I only

b. II only

c. Both I and II

d. Neither I nor II

Which of the following services is a CPA firm NOT allowed to provide to an audit client (issuer of securities), according to Sarbanes-Oxley?

a. Bookkeeping services

b. Income tax return preparation

c. Both a & b

d. None of the above

The internal control provisions of Sarbanes-Oxley apply to which companies in the United States?

a. All public and nonpublic companies

b. All public companies

c. All issuers with more than 100 stockholders

d. All nonissuer companies

Regarding internal control, Sarbanes-Oxley requires a publicly traded company to:

I. Report on their own internal control

II. Make an assertion regarding the effectiveness of their own internal control

a. I only

b. II only

c. Both I and II

d. Neither I nor II

The most common management tool for evaluating internal control is the:

a. Sarbanes-Oxley internal control framework

b. COSO internal control framework

c. AICPA internal control framework

d. SEC internal control framework