Unit 1 Challenge 1
Which of the following statements is true regarding the regulation of ethics in
accounting?
a.)
The Sarbanes-Oxley Act determines the standards of financial reporting for state and
local governm
...
Unit 1 Challenge 1
Which of the following statements is true regarding the regulation of ethics in
accounting?
a.)
The Sarbanes-Oxley Act determines the standards of financial reporting for state and
local government.
b.)
The private sector proposed the Sarbanes-Oxley Act as a way to regulate competition
within industries.
c.)
The IRS created the Sarbanes-Oxley Act in order to prosecute companies who did not
pay taxes.
d.)
Unethical behavior by major companies prompted the government to create the
Sarbanes-Oxley Act.
Which of the following statements is true regarding the purpose of the
Sarbanes Oxley-Act?
a.)
The Sarbanes-Oxley Act regulates financial reporting to prevent fraud or misconduct.
b.)
The Sarbanes-Oxley Act standardizes accounting practices across all nations.
c.)
The Sarbanes-Oxley Act develops and enforces securities laws.
d.)
The Sarbanes-Oxley Act requires financial statements to be relevant, reliable and
comparable.
Which of the following was created by the government in response to
unethical behavior by companies such as Enron and WorldCom?
a.)
Generally Accepted Accounting Principles
b.)
International Financial Reporting Standards
c.)
The Sarbanes-Oxley Act
d.)
The Financial Accounting Standards Board
Financial reporting standards for state and local government are determined
by the governing body known as __________, while international standards are
compiled in the governing principles known as __________.
a.)
FASB; GAO
b.)
SEC; GAAP
c.)
AICPA; IRS
d.)
GASB; IFRS
The governing body __________ is responsible for developing the US
governing principles known as __________.
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