Test Q - Chapter 1 & 2

Question 1

–Requirement of CEO/CFO certification of financial statements

–Requirement of auditor examination of company internal controls

–Creation of the Public Company Accounting Oversight Board (PCAOB) to serve as an auditing profession “watchdog.”

–Prohibition of certain client services by firms conducting a client’s audit.

Answer 1

What are the specific laws that came out of SOX?

Question 2

What does certification mean?

Answer 2

1.They have read the financial statements.

2.They are not aware of any false or misleading statements (or any key omitted disclosures).

Question 3

What stays the same during the audit plan?

Answer 3

Standards remain the same throughout audits while procedures varies from companies

Question 4

Why do we have standards on audit?

Answer 4

We have standards on audit because it is a profession

Question 5

cannot give directions to other employees

Answer 5

Managerial relationships

Question 6

can’t be tied with family relations

Answer 6

Financial relationships