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.
