Sample Question
Sample Question 5312 Fall 2009
Student:___________________________________________________________________
1. Corporate governance include concerns about:
A. business ethics and social responsibility.
B. the responsibilities of the board of directors.
C. equitable treatment of stakeholders.
D. disclosures and transparency.
E. all of the above.
2. The most powerful corporate governance legislation to date has been:
A. the Sarbanes-Oxley Act (SOX) of 2002.
B. the creation of the American Institute of Certified Public Accountants.
C. Corporate Ethics Code of 2005.
D. the regulation of inventory management practices by the SEC.
3. The Sarbanes-Oxley Act (SOX) of 2002 does not specifically prohibit an independent auditor from performing the following non-audit function(s) for an audit client:
A. financial information systems design and implementation.
B. internal audit outsourcing services.
C. tax services.
D. "expert" services.
E. SOX specifically prohibits an independent auditor from performing all of all of the non-audit services for an audit client.
4. Which is the following descriptions is not one of the "Seven Financial Shenanigans" identified by Howard Schilit and listed in Exhibit 10-1:
A. recording revenue too soon or that is of a questionable quality.
B. boosting income with one-time gains.
C. failing to record intangible assets which the company has ownership rights to.
D. shifting future expenses to the current period as a special charge.
E. failing to record or improperly reducing liabilities.
5. The explanatory notes to the financial statements:
A. should be referred to if more than a cursory, and perhaps misleading impression of a firm's financial position and its results of operations is to be achieved.
B. are not an integral part of the financial statements.
C. include a great deal of detailed information that is potentially useful only to a financial analyst
Student:___________________________________________________________________
1. Corporate governance include concerns about:
A. business ethics and social responsibility.
B. the responsibilities of the board of directors.
C. equitable treatment of stakeholders.
D. disclosures and transparency.
E. all of the above.
2. The most powerful corporate governance legislation to date has been:
A. the Sarbanes-Oxley Act (SOX) of 2002.
B. the creation of the American Institute of Certified Public Accountants.
C. Corporate Ethics Code of 2005.
D. the regulation of inventory management practices by the SEC.
3. The Sarbanes-Oxley Act (SOX) of 2002 does not specifically prohibit an independent auditor from performing the following non-audit function(s) for an audit client:
A. financial information systems design and implementation.
B. internal audit outsourcing services.
C. tax services.
D. "expert" services.
E. SOX specifically prohibits an independent auditor from performing all of all of the non-audit services for an audit client.
4. Which is the following descriptions is not one of the "Seven Financial Shenanigans" identified by Howard Schilit and listed in Exhibit 10-1:
A. recording revenue too soon or that is of a questionable quality.
B. boosting income with one-time gains.
C. failing to record intangible assets which the company has ownership rights to.
D. shifting future expenses to the current period as a special charge.
E. failing to record or improperly reducing liabilities.
5. The explanatory notes to the financial statements:
A. should be referred to if more than a cursory, and perhaps misleading impression of a firm's financial position and its results of operations is to be achieved.
B. are not an integral part of the financial statements.
C. include a great deal of detailed information that is potentially useful only to a financial analyst