1. Why should accounting professionals at non-publicly traded companies stay current with issues and trends related to the Sarbanes-Oxley Act? Similar legislation specifically for non-public companies could be introduced in the future. Organizations in compliance with the Sarbanes-Oxley Act and related legislation may be viewed more favorably by lenders, investors and insurers. Private companies looking to go public will be able to make the transition more efficiently. Professionals with knowledge in this area are highly marketable at public companies. All of the above 2. Which of the following is not a result of recent accounting reforms? Private companies and nonprofit organizations are taking steps similar to public companies to strengthen internal controls and ensure the accuracy of their financial reporting. Firms listed on the New York Stock Exchange must have an internal audit function. Internal auditors are in less demand than five years ago. Costs for audit-related services have increased significantly. All of the above 3. Which organization was recently created to oversee the work of firms that audit public companies? The Securities and Exchange Commission (SEC) The Committee of Sponsoring Organizations of the Treadway Commission (COSO) The Public Company Accounting Oversight Board (PCAOB) The Federal Bureau of Investigation (FBI) The Financial Accounting Standards Board (FASB) 4. Which of the following hiring trends was not sparked by the Sarbanes-Oxley Act of 2002? Companies are adding accounting staff to meet compliance requirements. Salaries are rising as a result of the increased demand for accountants and internal auditors. Candidate recruitment and staff retention is now less important for public accounting firms and corporations. There is a continuing need to recruit top accounting professionals to help maintain ongoing compliance with the Sarbanes-Oxley Act. All of the above 5. Which of the following trends are currently emerging at universities across the country? Colleges are offering more courses in internal audit, enterprise risk management, ethics and financial statement analysis. Schools are offering certificate or degree programs in forensic accounting. Enrollment in accounting programs has risen. Graduates are receiving multiple employment offers. All of the above 6. Which of the following best describes how recent reforms have impacted the career prospects for internal auditors? Demand has risen and so have salaries. Demand has risen but salaries have not. Demand has declined but salaries have risen. Demand has declined and so have salaries. 7. You are interested in working in an area that identifies corporate financial fraud such as securities fraud, tax scams, embezzlement and money laundering. Which of the following specialties will best help you achieve your career goal? Tax accounting Internal auditing Forensic accounting Audit and assurance Criminal justice 8. True or false: The CPA designation is only valuable if you want a career in public accounting. True False 9. True or false: In recent years, more women than men have received accounting degrees. True False 10. Approximately what percentage of accountants who enter public accounting eventually leave to work in private industry? 20% 40% 60% 80% 11. Which one of the following is the most significant organizational change among the Big Four accounting firms as a result of the Sarbanes-Oxley Act? Separating auditing and consulting services Separating auditing and tax services Expanding internal audit services Expanding certain other non-audit consulting services 12. Which of the following does not describe the impact of corporate governance regulations on second-tier accounting firms? Increasing consolidation among firms Taking on more work Decline in business opportunities Increase in audit business Greater focus on niche concentrations and industry expertise