Question Details

ACCT 431
CHAPTER 2
1) The legal right to perform audits is granted to a CPA firm by regulation of:
2) The four categories for describing the size of audit 
firms include: the Big Four international firms; 
national firms; regional and local firms; and small 
firms. Which of the following is not a characteristic 
of a small firm?
3) Sarbanes-Oxley and the Securities Exchange 
Commission restrict auditors from providing many 
consulting services to their publically traded audit 
clients. Which of the following is true for auditors of 
publically traded companies?
4) Which of the following statements is true as it 
A) Only senior partners are liable for the 
relates to limited liability partnerships?
5) List and describe the three factors that influence 
the organizational structure of all CPA firms. What 
are the most common forms of CPA firm 
organization?
6) List and describe the six organizational structures 
available to CPA firms.
7) Many small/local accounting firms do not perform 
audits as their primary services to their clients 
8) All of the Big Four and many of the smaller CPA 
firms now operate as Limited Liability Partnerships.
Commission restrict auditors from providing many 
9) Sarbanes-Oxley and the Securities Exchange 
10) Limited liability companies are structured and 
taxed like a general partnership, but their owners 
have limited personal liability similar to that of a 
general corporation.