ACCY 360 EXAM SCRIPT FINAL PAPER
2026 EXAM Q&A STUDY GUIDE
◉ According to SOX Title I, the PCAOB, audit documentation must be
maintained for ____ year(s)
Answer: 7
◉ According to the SEC, other audit partners should rotate off the
audit engagement after no more than ____ year(s)
Answer: 7
◉ According to the SEC, lead partners and concurring partners are
subject to a ___ year "time out" period before returning to an
engagement
Answer: 5
◉ Under SEC rules, covered persons include the audit engagement
team and individuals within the audit chain of command. This
includes any other partner, principal, shareholder, or managerial
employee of the firm who provided ____ or more hours of non audit
services
Answer: 10
,◉ A cool off period of ___ year(s) is required before a member of an
issuer's audit engagement team may begin working for a registrant
in a key position
Answer: 1
◉ The PCAOB will conduct annual inspections of registered public
accounting firms that regularly provide audit reports for more than
_____ issuers
Answer: 100
◉ Independence is considered impaired if a covered member's
aggregate outstanding balance from credit cards have a balance
greater than ______ after payment of the most recent monthly
statements made by the due date or within any available grace
period
Answer: 10,000
◉ According to the AICPA code of conduct, a firm engaged to provide
attest services to the public must be owned by greater that _____%
CPAs.
Answer: 50+
◉ Auditors of non issuers must audit documentation for at least _____
year(s) from the report release date
,Answer: 5
◉ Auditors of non issuers must assemble final audit documentations
within ____ day(s) following the report release date
Answer: 60
◉ Auditors of issuers myst assemble final audit documentation with
____ day(s) following the report release date
Answer: 45
◉ Why is an independent auditor asked to express an opinion on the
fair presentation of financial statements?
Answer: the opinion of an independent party is needed because a
company is not likely to be considered objective with respect to its
own financial statements
◉ What organization is responsible for setting auditing standards
for audits of publicly traded companies in the US?
Answer: PCAOB
◉ Which of the following statements best describes a relationship
between sample size and other elements of auditing?
Answer: if materiality decreases, sample size will need to increase
, ◉ Who bears ultimate responsibility for the financial statements?
Answer: management of the organization
◉ What describes the role of corporate governance?
Answer: holds management accountable to shareholders for the use
of the entity's resources
◉ The auditor must be independent of the auditee unless
Answer: the auditor cannot lack indepence
◉ What are some requirements of the Sarbanes Oxley Act?
Answer: - Audit firms cannot provide most types of non audit
services to their SEC issuer auditees
- Audit firms are required to rotate audit partners every 5 years for
public company audits
- Firms that audit public companies are subject to inspection by the
PCAOB
- Firms that audit public companies must register with the PCAOB
◉ What best describes the concept of audit risk?
Answer: the risk that the auditor will provide a clean opinion on
financial statements that are materially misstated.
2026 EXAM Q&A STUDY GUIDE
◉ According to SOX Title I, the PCAOB, audit documentation must be
maintained for ____ year(s)
Answer: 7
◉ According to the SEC, other audit partners should rotate off the
audit engagement after no more than ____ year(s)
Answer: 7
◉ According to the SEC, lead partners and concurring partners are
subject to a ___ year "time out" period before returning to an
engagement
Answer: 5
◉ Under SEC rules, covered persons include the audit engagement
team and individuals within the audit chain of command. This
includes any other partner, principal, shareholder, or managerial
employee of the firm who provided ____ or more hours of non audit
services
Answer: 10
,◉ A cool off period of ___ year(s) is required before a member of an
issuer's audit engagement team may begin working for a registrant
in a key position
Answer: 1
◉ The PCAOB will conduct annual inspections of registered public
accounting firms that regularly provide audit reports for more than
_____ issuers
Answer: 100
◉ Independence is considered impaired if a covered member's
aggregate outstanding balance from credit cards have a balance
greater than ______ after payment of the most recent monthly
statements made by the due date or within any available grace
period
Answer: 10,000
◉ According to the AICPA code of conduct, a firm engaged to provide
attest services to the public must be owned by greater that _____%
CPAs.
Answer: 50+
◉ Auditors of non issuers must audit documentation for at least _____
year(s) from the report release date
,Answer: 5
◉ Auditors of non issuers must assemble final audit documentations
within ____ day(s) following the report release date
Answer: 60
◉ Auditors of issuers myst assemble final audit documentation with
____ day(s) following the report release date
Answer: 45
◉ Why is an independent auditor asked to express an opinion on the
fair presentation of financial statements?
Answer: the opinion of an independent party is needed because a
company is not likely to be considered objective with respect to its
own financial statements
◉ What organization is responsible for setting auditing standards
for audits of publicly traded companies in the US?
Answer: PCAOB
◉ Which of the following statements best describes a relationship
between sample size and other elements of auditing?
Answer: if materiality decreases, sample size will need to increase
, ◉ Who bears ultimate responsibility for the financial statements?
Answer: management of the organization
◉ What describes the role of corporate governance?
Answer: holds management accountable to shareholders for the use
of the entity's resources
◉ The auditor must be independent of the auditee unless
Answer: the auditor cannot lack indepence
◉ What are some requirements of the Sarbanes Oxley Act?
Answer: - Audit firms cannot provide most types of non audit
services to their SEC issuer auditees
- Audit firms are required to rotate audit partners every 5 years for
public company audits
- Firms that audit public companies are subject to inspection by the
PCAOB
- Firms that audit public companies must register with the PCAOB
◉ What best describes the concept of audit risk?
Answer: the risk that the auditor will provide a clean opinion on
financial statements that are materially misstated.
