39.
Which of the following is NOT a requirement of Section 10A of the Securities Exchange Act
of 1934 for auditors of public companies with respect to illegal acts?
40.
Under the rules of the Sarbanes-Oxley Act of 2002 (SOX), who must certify the public
reports filed with the SEC?
41.
Under section 302 of the SOX the financial statement certifying officials must include in
their certification that:
42.
What argument can be made that SOX may not be effective in reducing fraud?
43.
The section of SOX that requires management to prepare a report on its internal controls
is:
44.
A payment made to foreign government officials to ensure that they do what is expected
given their job requirements can be characterized as a:
45.
A payment made to induce a foreign government official to do something they might not
otherwise be required to do is a:
46.
Which of the following is NOT an affirmative defense for those violating the FCPA?
47.
Pfizer was investigated by the SEC for violating the Foreign Corrupt Practices Act (FCPA)
because it allegedly:
48.
The FCPA requires all SEC registrants to have each of the following except:
49.
The International Federation of Accountants (IFAC) Policy Position Paper #4
A Public
Interest Framework for the Accountancy Position
addresses:
50.
Gray uses Hofstede’s cultural values that were discussed in Chapter 1 to:
51.
Which of the following is NOT a cultural factor identified in Gray’s Model?
52.
With respect to U.S. GAAP, the SEC’s approach to determining whether International
Financial Reporting Standards (IFRS) should be allowed for and/or replace GAAP can be
described as:
53.
The name of the international securities body that facilitates a country’s choice to regulate
the use and application of IFRS is:
54.
Principles-based standards differ from a rules-based approach because:
55.
One feature of a corporate governance system commonly found outside the U.S. is:
56.
The term “true and fair view” tends to be a replacement for _________ used in the U.S.
57.
The problem of a compliance approach in implementing global standards is that it can
result in:
58.
The international body responsible for developing and issuing high-quality ethical
standards and other pronouncements for professional accountants for use around the
world is:
59.
The IFAC Global Code of Ethics is similar to the AICPA Code in each of the following areas
except it doesn’t:
60.
The difference between the United Kingdom Bribery Act and the FCPA in the U.S. is:
61.
PCAOB inspections of U.S. audit firms operating in China creates challenges because:
62.
In the Advanced Battery Technologies case, the opinion of the court:
63.
In Heinrich Müller: Big–Four Whistleblower, Müller had an ethical dilemma because:
64.
The Richards & Co. case raises questions for the quality review partner because the client
had:
65.
The defendant-auditors in the Anjoorian case argued, in their defense, that:
66.
In the Vertical Pharmaceuticals case, Deloitte & Touche was sued because:
67.
Kay and Lee performed an audit required for Holligan Industries to extend a loan with
Second National Bank & Trust. Kay and Lee may be liable for:
68.
The ethical dilemma in the Getaway Cruise Lines case can best be described as:
69.
The Con-Way case deals with legal liabilities due to:
6-37
70.
The fraud at Satyam involved:
71.
The legal liability of the auditors in the Autonomy case can best be described as resulting
from:
Essay Questions
6-38
72.
Distinguish between an auditor’s legal liability under common law and statutory law.
