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Question 2In order to audit a public company more effectively, the PCAOBpurposed the standard of:reviewing quarterly financial statementsauditing a company's financial reporting processreviewing annual financial statementsavoiding rational technical demandsQuestion 3The Sarbanes-Oxley Act of 2002 gave the PCAOB which of thefollowing significant powers?conduct inspections of the auditing practices of theseregistered public accounting firmsinvestigate, discipline and impose sanctions on firms andassociated personsregister public accounting firms that prepare reports on thefinancial standards of public companiesall of these answers are correctQuestThe PCAOB is an independent body overseen by the Securities andExchange Commission.truefalseQuestion 5What characteristic describes the general function of theindependent auditor?confidenceobjectivityresponsibilityloyaltyQuestion 6The Sarbanes-Oxley Act of 2002 give the PCAOB significant powersto perform the following functions except:investigate, discipline, and impose sanctions on firms andassociated personsenforce compliance by these registered firms with professionalstandards and securities lawrelease crucial accounting information to the mediaconduct inspections of the auditing practices of theseregistered public firmsQuestion 7The financial reporting of a public company under federalsecurities law is a continuous disclosure process.truefalseQuestion 8The mission of the PCAOB is:to establish or adopt auditing rulesconduct inspections of auditing practicesto restore the confidence of investorsto investigate, discipline, impose standardsQuestion 9Although accounting records can never provide sufficientevidence, they nevertheless provide _______________ evidence.financialsubstantialessentialfundamentalQuestion 10What are the primary outputs of the process for developingauditing standards?annual and quarterly financial statementsstatement of cash flowannual and quarterly goal reportssemi-annual and annual statements