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ACCY 501 TEST 1 2026 LATEST
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
Hiring and employments rules of sox - correct answer -one year
cooling off before hiring former auditor as a chief
Prohibit barred or suspended auditors
May not extend loans to directors or corp officers
Sox disclosures - correct answer -equity transactions with mgmt
and 10% sh within 10 days
Whether they have adopted a code of ethics for senior officers
Info about material changes on real time basis
Off balance sheet transactions
Existence of financial expert on aud comm
Rules for audit committee - correct answer -members must be
independent of the issuer; excluded: family and employees of
mgmt
People with sig biz relations to co
Some interlocking directors
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Rules for bod and offiers - correct answer -CEO and CFO certify
financial reports
Forfeit bonuses and stock sales if issuer is required to reissue
due to misconduct
Prohibit trading in pension blackouts
External auditors must - correct answer -comply with PCAOB
Comply with quality control standards
Submit to PCAOB quality control inspections
Public companies must retain documents for - correct answer -7
years; if not 5 year felony
New external auditor rules - correct answer -comply with internal
controls testing standard
Attest to mgmt rep on internal controls
Obtain aud comm pre approval for srvices
Responsible to the AC
Use second partner review
ACCY 501 TEST 1 2026 LATEST
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
Hiring and employments rules of sox - correct answer -one year
cooling off before hiring former auditor as a chief
Prohibit barred or suspended auditors
May not extend loans to directors or corp officers
Sox disclosures - correct answer -equity transactions with mgmt
and 10% sh within 10 days
Whether they have adopted a code of ethics for senior officers
Info about material changes on real time basis
Off balance sheet transactions
Existence of financial expert on aud comm
Rules for audit committee - correct answer -members must be
independent of the issuer; excluded: family and employees of
mgmt
People with sig biz relations to co
Some interlocking directors
, Page | 2
Rules for bod and offiers - correct answer -CEO and CFO certify
financial reports
Forfeit bonuses and stock sales if issuer is required to reissue
due to misconduct
Prohibit trading in pension blackouts
External auditors must - correct answer -comply with PCAOB
Comply with quality control standards
Submit to PCAOB quality control inspections
Public companies must retain documents for - correct answer -7
years; if not 5 year felony
New external auditor rules - correct answer -comply with internal
controls testing standard
Attest to mgmt rep on internal controls
Obtain aud comm pre approval for srvices
Responsible to the AC
Use second partner review
