Question

Question 2

In order to audit a public company more effectively, the PCAOB purposed the standard of:

		reviewing quarterly financial statements
		auditing a company's financial reporting process
		reviewing annual financial statements
		avoiding rational technical demands

Question 3

The Sarbanes-Oxley Act of 2002 gave the PCAOB which of the following significant powers?

		conduct inspections of the auditing practices of these registered public accounting firms
		investigate, discipline and impose sanctions on firms and associated persons
		register public accounting firms that prepare reports on the financial standards of public companies
		all of these answers are correct

Quest

The PCAOB is an independent body overseen by the Securities and Exchange Commission.

		true
		false

Question 5

What characteristic describes the general function of the independent auditor?

		confidence
		objectivity
		responsibility
		loyalty

Question 6

The Sarbanes-Oxley Act of 2002 give the PCAOB significant powers to perform the following functions except:

		investigate, discipline, and impose sanctions on firms and associated persons
		enforce compliance by these registered firms with professional standards and securities law
		release crucial accounting information to the media
		conduct inspections of the auditing practices of these registered public firms

Question 7

The financial reporting of a public company under federal securities law is a continuous disclosure process.

		true
		false

Question 8

The mission of the PCAOB is:

		to establish or adopt auditing rules
		conduct inspections of auditing practices
		to restore the confidence of investors
		to investigate, discipline, impose standards

Question 9

Although accounting records can never provide sufficient evidence, they nevertheless provide _______________ evidence.

		financial
		substantial
		essential
		fundamental

Question 10

What are the primary outputs of the process for developing auditing standards?

		annual and quarterly financial statements
		statement of cash flow
		annual and quarterly goal reports
		semi-annual and annual statements

Answer 1

Question 2) auditing a company's financial reporting process

Explanation :

The purpose of the PCAOB is to protect the interests of the investors and public. It plays a independent role audit. It was created by Surbanes Oxeley Act.

3) all of the above is correct

Explanation

Conduct inspections of auditing practice of those registered with public accounting firms

Investigate discipline and impose sanctions on firms and associated persons

Register public accounting firms that prepare reports on the financial standards of public companies.

4) true

Explanation :

PCAOB is the abbrivation of Public Company Accounts Oversight Board. It was created by Surbanes Oxeley Act. Now the controlling powers are with the SEC.  

5)Confidence

Explanation : this characteristic is needed for independent auditor. He has the fair and clear analytical skills.

6) release crucial information to the media

Explanation : it doesn't release the crucial information to media. It protects the investor interests and oversee the audit reporting process.

7) true

Explanation : it assure the investor full and fail information. It gives protection to investors. And also oversee the maintenance of fair and honest market

8) to restore the confidence of investors

explanation : it oversee the audit of public companies in order to protect the interests of the investors

9)Essential evidence :

Explanation : financial statements may not give a full evidence to the auditors but it will provide the mains or important issues.

10) annual and quarterly financial statements

Explanation : the primary out put of developing auditing standards is for preparing accounts with out the errors and for accuracy . They are prepared annually and quarterly.