The ineffective monitoring of management can be a result of

Establishing an audit committee oversight over the financial reporting process and internal control

A single person or small group that dominates management

The addition of outside independent board members

Excessive safeguards and monitoring systems

The auditor of an issuer must express an opinion on the effectiveness of internal control. The opinion should be expressed

As of a Specified Date: Yes, For a Specified Period of Time: Yes

As of a Specified Date: Yes, For a Specified Period of Time: No

As of a Specified Date: No, For a Specified Period of Time: Yes

As of a Specified Date: No, For a Specified Period of Time: No

56)The Sarbanes-Oxley Act of 2002 (SOX) imposes which of the following requirements?

Answers

The board of directors must be composed entirely of independent shareholders

At least one member of the audit committee must be a former partner of the independent public accounting firm

The audit committee must be composed entirely of independent members of the board

Once the audit committee has selected the independent public accounting firm, the committee must not interfere with the firm's conduct of the financial statement audit

57)Which of the following is most likely a violation of the rules of the PCAOB?

Answers

An issuer's independent auditor also performs consulting work for the issuer on the design and operation of its internal controls

An issuer offers its common shares and preferred shares on different stock exchanges

An issuer's management is not independent of its board of directors

An issuer uses the same independent auditor in 2 consecutive years

58)All of the following are audit quality control requirements contained in SOX of 2002 EXCEPT

Answers

The lead audit partner must rotate off the audit every 5 years

The audit report must be submitted to the PCAOB prior to issuance

The audit report must be reviewed and approved by a second partner

The PCAOB will periodically inspect registered CPA firms

59)Section 302 of SOX of 2002 requires the CEO and CFO, in every annual or quarterly filing with the SEC, to certify all of the following EXCEPT

Answers

That they have taken every practical step to correct significant control deficiencies identified in the previous audit

That they have evaluated the effectiveness of the system of internal control

That they have taken responsibility for the system of internal control

That to the best of their knowledge, the financial statements are free of material misstatements

60)To date, The PACOB issued _____________ new standards

Answers

5

14 or 15

99

125