T/F
True or False: All countries tax income earned by multinational corporations within their borders.
True.
What case is considered "India's own Enron scandal"?
a. Tyco Scandal
b. Freddie Mac Scandal
c. HealthSouth Scandal
d. Satyam Scandal
d. Satyam Scandal
What company was involved Chinese Coffee Chain’s Scandal?
a. Luckin Coffee
b. Coffee Box
c. Pacific Coffee
d. Greybox Coffee
a. Luckin Coffee
What is the acronym for the general accounting standards used by over 140 countries around the world?
a. GAAP
b. IASB
c. ASBE
d. IFRS
d. IFRS
The Financial Regulatory Council is the independent regulator of audit and accounting firms in the U.K. and Ireland.
True.
What was the main fraud committed in the Satyam Scandal?
a. Overstatement of the company's revenues and profits
b. Bribery of government officials
c. Understatement of company's expenses
d. Misrepresentation of financial statements
a. Overstatement of the company's revenues and profits
Who was fined in the Stagecoach audit failure?
a. EY the company
b. The EY partner on the audit
c. Both a and b
d. None of the above
c. Both a and b
Which one of these statements does NOT describe a key difference between GAAP and IFRS?
a. LIFO inventory accounting is not permitted under IFRS
b. IFRS does not cover employee benefit plans, while GAAP does
c. IFRS is a principle-based approach to accounting while GAAP is rules-based
d. Liabilities must be separated as current and non-current under GAAP but do not need to be separated under IFRS
b. IFRS does not cover employee benefit plans, while GAAP does
True or False: Fixed Asset valuation for Chinese Accounting Standards uses FMV.
False. Fixed Asset valuation for Chinese Accounting Standards uses historical cost.
What was the value of the loss that Grant Thornton helped Parmalat cover up?
a. $100 mil
b. $200 mil
c. $300 mil
d. $400 mil
c. $300 mil
Which number best represents the percentage of market share the Big Four accounting firms audit within the U.S. and E.U.?
a. 85%
b. 50%
c. 67%
d. 75%
a. 85%
Which of these statements is NOT TRUE about China’s accounting system?
a. Standards were shaped by the evolution of the political and economic system
b. CAS is closely related to IFRS
c. Audit oversight is run by PCAOB
d. Accounting principles are called ASBEs or ASSBEs
c. Audit oversight is run by PCAOB
True or False: IFRS is a rules-based system
False. IFRS is a principles-based system.
In the Parmalat case, after how many years must Italian companies change their primary auditor?
a. 9 years
b. 12 years
c. 14 years
d. 17 years
a. 9 years
How much revenue did Luckin Coffee fabricate in transactions in the Chinese Coffee Chain’s Scandal?
a. $150 mil
b. $225 mil
c. $310 mil
d. $405 mil
c. $310 mill
Which of the following plays a major role in IFRS
a. Fair value
b. Book value
c. Absolute value
a. Fair value
True or False: Under GAAP/FASB revenue as realized or earned.
True.
What was the main scheme Parmalat used to hide the fraud?
a. Creating and altering physical documents
b. Double billing
c. Asset misappropriation
d. Bribery
b. Double billing
Why was EY Fined Over Audit in UK?
a. EY committed bribery
b. EY did not collect enough evidence to support the F/S.
c. Stagecoach overstated revenue and EY did not catch it.
d. EY's partner Mark Harvey misrepresented Stagecoach's F/S.
b. EY did not collect enough evidence to support the F/S.
Which entity is not responsible for helping regulate audit firms
a. SEC in the Philippines
b. FRC in the United Kingdom
c. KPMG in the Netherlands
d. PCAOB in the United States
c. KPMG in the Netherlands