Florida ACG6657 Environment of Accounting and Auditing

ACG 6657 Florida State University Environment of Accounting and Auditing Exam Practice

Florida International University

ACG 6657 - Environment of Accounting and Auditing

MACC

 Fgfgfgf Final Exam (20% of your grade)

 Instructions:

 This is an individual take home exam. Answer the following questions (33? x 3=100). Please do not discuss or share your views/opinions about any of these questions with your classmates and do not take help from any other person or entity (your answer will be submitted for testing plagiarism). Feel free to use regulatory pronouncements (e.g., SEC, PCAOB, SOX) and any prior research/studies or news reports to strengthen your answers/arguments/claims. However, do not forget to provide proper citations and references:

Question #1:

a. Define audit quality in your own language. How is audit quality related with financial reporting quality?

b. What are the different attributes of auditor quality? Discuss with reference to auditor quality measures used in different articles you read in this class.

c. Recently SEC revised the original rules defining (i) non-accelerated filers, (ii) accelerated filers and (iii) large accelerated filers. What are the main revisions?

d. What are the provisions formulated by the regulatory bodies to ensure auditor independence?

 Question #2:

a. Discuss the importance of audit committee for the financial reporting process.

 b. Discuss various aspects of existing regulatory provisions of audit committee to ensure proper oversight of the financial reporting system of corporations.

 c. Are those provisions sufficient to ensure achieving audit committee objectives? If not give examples (with citations if any).

Question #3:

a. The congress has permanently exempted non-accelerated filers from complying with SOX 404(b). Provide your justification for and against (both side) this provision (with citations of prior research).

b. Discuss how the roles and responsibilities of PCAOB help audit and accounting profession.

 Page limits: There is no page limit. However, I believe you can do a pretty good job with 5 to 10 pages (excluding appendix).