2013 accounting news quiz answers

BY KEN TYSIAC

Here are the answers to the 2013 JofA news quiz.

1. Question: What did the PCAOB propose that public company auditor’s reports should include?

Answer: (b) The engagement partner’s name.

Full story: “PCAOB Proposal Could Result in Public Tracking of Auditors


2. Question: Which converged standard did members of FASB and the International Accounting Standards Board (IASB) indicate that they plan to vote in favor of?

Answer: (a) Revenue recognition. The boards expect the final standard to be released in the first quarter of 2014.

Full story: “Final IASB Approval of Rev Rec Standard Imminent


3. Question: What was the subject matter of the first two Private Company Council proposals that FASB endorsed as private company GAAP alternatives?

Answer: (d) Goodwill amortization after business combinations and a simplified hedge accounting approach to certain interest rate swaps. FASB expects to issue final Accounting Standards Updates on these topics in January.

Full story: “Private Company GAAP Exceptions Get Thumbs Up From FASB


4. Question: What did the Committee of Sponsoring Organizations of the Treadway Commission release in May?

Answer: (d) An updated internal control framework.

Full story: “Newly Released COSO Framework a Fresh Look at Internal Control


5. Question: Who took over as the new chairman of FASB?

Answer: (b) Russell Golden. He took over the post July 1 after previous chairman Leslie Seidman’s term concluded.

Full story: “Golden to Succeed Seidman as FASB Chairman


6. Question: What are the four conflict minerals that new SEC regulations require public companies to track in their supply chains?

Answer: (a) Tin, tantalum, tungsten, gold.

Full story: “Conflict Minerals Rule Poses Compliance Challenge


7. Question: After how many years will audit firms be forced to rotate off engagements with public business entities in the European Union under a new agreement that has preliminary approval?

Answer: (c) 10 years. The engagement term can be extended to a maximum of 20 years if the engagement is put out for bid. In cases of joint audits, where multiple audit firms share the engagement, a maximum period of 24 years would be allowed.

Full story: “EU Member States Approve Mandatory Audit Firm Rotation


8. Question: Which government entity in July struck a severe blow to efforts to impose mandatory audit firm rotation in the United States?

Answer: (b) The House of Representatives, whose members voted 321 to 62 in favor of a bill that would prohibit the PCAOB from requiring public companies to use specific auditors or requiring the use of different auditors on a rotating basis.

Full story: “Bill Prohibiting Mandatory Audit Firm Rotation Passes U.S. House


9. Question: What did the PCAOB call the additional items of information it proposed auditors should disclose to make audit reports more informational?

Answer: (d) Critical audit matters.

Full story: “PCAOB Proposes Sweeping Changes to the Auditor’s Reporting Model


10. Question: What is the primary measurement basis for the AICPA’s Financial Reporting Framework for Small- and Medium-Sized Entities, which was released in June to provide a new alternative for small, private businesses in non-GAAP reporting?

Answer: (a) Historical cost.

Full story: “AICPA Unveils Framework Designed for Streamlined Reporting


11. Question: What is the name of the analytical tool the SEC is developing to help its Financial Reporting and Audit Task Force uncover fraudulent financial statements?

Answer: (c) The Accounting Quality Model.

Full story: “What Accounting Fraud Risk Factors Will Attract the SEC’s Attention?”


12. Question: What reasons did commenters cite for disagreement with the widely criticized FASB/IASB reproposal for financial reporting on leases?

Answer: (d) All of the above.

Full story: “Businesses Voice Stiff Opposition to Lease Proposal

Ken Tysiac ( ktysiac@aicpa.org ) is a JofA senior editor.

SPONSORED REPORT

How to make the most of a negotiation

Negotiators are made, not born. In this sponsored report, we cover strategies and tactics to help you head into 2017 ready to take on business deals, salary discussions and more.

VIDEO

Will the Affordable Care Act be repealed?

The results of the 2016 presidential election are likely to have a big impact on federal tax policy in the coming years. Eddie Adkins, CPA, a partner in the Washington National Tax Office at Grant Thornton, discusses what parts of the ACA might survive the repeal of most of the law.

QUIZ

News quiz: Scam email plagues tax professionals—again

Even as the IRS reported on success in reducing tax return identity theft in the 2016 season, the Service also warned tax professionals about yet another email phishing scam. See how much you know about recent news with this short quiz.