Technology and globalization have created a business environment of nearly constant change, and accounting trendsetters have worked hard to keep up with the pace.
Take this 12-question quiz and see how well you kept up with the news in the accounting profession in 2013. If you find yourself struggling with some of the questions, you may want to check out the JofA website a bit more often.
1. What did the PCAOB propose that public company auditor’s reports should include?
a. The engagement partner’s signature.
b. The engagement
partner’s name.
c. The engagement partner’s CPA license
number.
d. The engagement partner’s Social Security number.
2. Which converged standard did members of FASB and the
International Accounting Standards Board (IASB) indicate that they
plan to vote in favor of?
a. Revenue recognition.
b. Leases.
c. Financial instruments.
d. Insurance.
3. What was the subject matter of the first two Private
Company Council proposals that FASB endorsed as private company GAAP alternatives?
a. Uncertain tax positions and goodwill amortization after business
combinations.
b. Variable-interest entity consolidation and
intangible assets after business combinations.
c. Uncertain tax
positions and variable-interest entity consolidation.
d. Goodwill
amortization after business combinations and a simplified hedge
accounting approach to certain interest rate swaps.
4. What did the Committee of Sponsoring Organizations of the
Treadway Commission release in May?
a. Updated guidance on how to manage IT.
b. Updated guidance on
Service Organization Controls.
c. An updated Sarbanes-Oxley
implementation guide.
d. An updated internal control framework.
5. Who took over as the new chairman of FASB?
a. Leslie Seidman.
b. Russell Golden.
c. James
Kroeker.
d. Mary Jo White.
6. What are the four conflict minerals that new SEC
regulations require public companies to track in their supply chains?
a. Tin, tantalum, tungsten, gold.
b. Tin, tantalum, tungsten,
silver.
c. Tin, tantalum, tungsten, copper.
d. Tin,
tantalum, tungsten, aluminum.
7. 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?
a. 6 years.
b. 8 years.
c. 10 years.
d. 15 years.
8. Which government entity in July struck a blow to efforts to
impose mandatory audit firm rotation in the United States?
a. The Supreme Court.
b. The House of
Representatives.
c. The Senate.
d. The SEC.
9. What did the PCAOB call the additional items of information
it proposed auditors should disclose to make audit reports more informational?
a. Investor alerts.
b. Audit analytics.
c. Auditor’s
discussion and analysis.
d. Critical audit matters
10. 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?
a. Historical cost.
b. Fair value.
c. Discounted present
value.
d. Deprival value.
11. 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?
a. Robocop.
b. Fraud IQ.
c. The Accounting Quality
Model.
d. Total Accounting Analytics.
12. What reasons did commenters cite for disagreement with the
widely criticized FASB/IASB reproposal for financial reporting on leases?
a. The proposal would lead to financial statements that would not
reflect the economics of leasing arrangements.
b. The
information produced would not be useful to investors.
c. The
considerable costs would not be worth the benefits.
d. All of the above.
Answers are below.
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.
