Chapter 2-9 Quiz

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Chapter 2 2-15: B. A is part of role of internal auditor because they can assist external auditors with annual financial statement audit. C& D also belong to internal auditors because they are often involved in assurance and consulting engagements for their entity. However, B cannot belongs to the role of internal auditors because it does not relate to the investors and creditors. , 2-16: A. Operation audits is to assess performance and identify area for improvement in order to evaluate whether the resource are being used efficiency and effective. B&C&D do not belong to operation audit because they are unrelated to improvement which needs to be evaluated. 2-17: A. As for the Sarbanes-Oxley Act, it prohibits external auditors from providing and…show more content…
During the late 1990 and the early 2000, accounting firm started to seek opportunity to client, and in October 2001, Enron became the subject of a SEC investigation, and then in 2002 congress passed the government regulation called Sarbanes-Oxley Act, and finally government established PCAOB. 2-19: C. As for A, management and external auditor share same responsibility is not correct. It depends on many other factors. As for B, it is not correct because both have a significant responsibility. As for D, this is not for guarantee. 2-21: A. This is the definition of PCAOB. As for the text, it said that it is a quasi-government al regulatory agency overseen by the SEC in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports. For B, accounting standard is not correct. For C, it is impossible to ignore public comments. For D, it is not independent of SEC, yet keep close relations with other department. 2-22: C. ASB does not belong to public audit company because it does not belong to government. However, PCAOB is established by the government and all of content of law is regulated by the government in order to standardize the

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