Find all School-related info fast with the new School-Specific MBA Forum

It is currently 24 Oct 2014, 04:04

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Federal regulations require that corporations use separate

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
SVP
SVP
avatar
Joined: 16 Jul 2009
Posts: 1634
Schools: CBS
WE 1: 4 years (Consulting)
Followers: 31

Kudos [?]: 279 [0], given: 2

Federal regulations require that corporations use separate [#permalink] New post 02 Aug 2009, 11:19
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 100% (02:07) wrong based on 11 sessions
Federal regulations require that corporations use separate accounting firms for audit and non-audit services. This presents difficulties for many multi-national companies because there are only four large international accounting firms based in the United States. An outspoken group of CEOs has suggested breaking up the “Big Four” firms into smaller operations, so that corporations will have more options for their accounting needs.

Which of the following stipulations would be most helpful in assuring the success of the CEOs’ plan to provide more variety in accounting services by breaking up the Big Four firms?


a The firms should maintain their multi-national contacts.
b CEOs for the new companies should be chosen from inside each firm.
c Corporations must keep the same firm for their audit services, but should choose a new firm for non-audit needs.
d The new firms should maintain their internal audit procedures.
e The Big Four firms should divide so that the audit and non-audit sections are not broken up.
_________________

The sky is the limit
800 is the limit


Get the best GMAT Prep Resources with GMAT Club Premium Membership

Director
Director
avatar
Joined: 05 Jun 2009
Posts: 852
WE 1: 7years (Financial Services - Consultant, BA)
Followers: 8

Kudos [?]: 189 [0], given: 106

Re: “Big Four” firms [#permalink] New post 02 Aug 2009, 11:53
C
_________________

Consider kudos for the good post ... :beer
My debrief : journey-670-to-720-q50-v36-long-85083.html

SVP
SVP
avatar
Joined: 16 Jul 2009
Posts: 1634
Schools: CBS
WE 1: 4 years (Consulting)
Followers: 31

Kudos [?]: 279 [0], given: 2

Re: “Big Four” firms [#permalink] New post 02 Aug 2009, 12:52
sudeep wrote:
C


Try again
_________________

The sky is the limit
800 is the limit


Get the best GMAT Prep Resources with GMAT Club Premium Membership

Senior Manager
Senior Manager
avatar
Joined: 26 May 2009
Posts: 317
Followers: 2

Kudos [?]: 36 [0], given: 13

Re: “Big Four” firms [#permalink] New post 03 Aug 2009, 05:06
I thought E with "non-audit sections are [strike]not[/strike] broken up" is an appropriate answer.

C is the requirement that is already stated in the premise.
Manager
Manager
User avatar
Joined: 15 Jan 2008
Posts: 57
Followers: 1

Kudos [?]: 5 [0], given: 1

Re: “Big Four” firms [#permalink] New post 03 Aug 2009, 05:44
I go for C

Because it's definitely! it have to broke into smaller.
_________________

Remember to give kudos if it's useful for you !!!

SVP
SVP
avatar
Joined: 16 Jul 2009
Posts: 1634
Schools: CBS
WE 1: 4 years (Consulting)
Followers: 31

Kudos [?]: 279 [0], given: 2

Re: “Big Four” firms [#permalink] New post 03 Aug 2009, 06:01
mrbgam wrote:
I go for C

Because it's definitely! it have to broke into smaller.


OA is E
_________________

The sky is the limit
800 is the limit


Get the best GMAT Prep Resources with GMAT Club Premium Membership

Director
Director
User avatar
Joined: 24 Aug 2007
Posts: 956
WE 1: 3.5 yrs IT
WE 2: 2.5 yrs Retail chain
Followers: 55

Kudos [?]: 733 [0], given: 40

Re: “Big Four” firms [#permalink] New post 06 Apr 2010, 07:32
Hi,

Can you please explane why E and why not C?
_________________

Want to improve your CR: cr-methods-an-approach-to-find-the-best-answers-93146.html
Tricky Quant problems: 50-tricky-questions-92834.html
Important Grammer Fundamentals: key-fundamentals-of-grammer-our-crucial-learnings-on-sc-93659.html

SVP
SVP
avatar
Joined: 17 Feb 2010
Posts: 1560
Followers: 12

Kudos [?]: 226 [0], given: 6

Re: “Big Four” firms [#permalink] New post 06 Apr 2010, 10:48
P1 - Federal regulations requires companies to use separate accounting firms

P2 - There are only 4 large accounting firms to choose from for multi national companies

P3 - CEO's suggest to break the 4 large accounting firms so that companies have more options.

What will most help to achieve success in CEO's plan

to break up the 4 large accounting firms into number of smaller firms and the smaller firms should have both audit and non-audit services.

Apparently most corporations are using 1 out of the 4 accounting firms. The stem is saying that federal regulations require corporations to use different accounting firms.

The stem is very confusing because when we read the stem we get the idea that federal regaulations require corporations to use separate firms for audit and non-audit services which is not the case. I fell in the same trap and did not understand the question until I saw OA.
SVP
SVP
avatar
Joined: 16 Jul 2009
Posts: 1634
Schools: CBS
WE 1: 4 years (Consulting)
Followers: 31

Kudos [?]: 279 [0], given: 2

Re: “Big Four” firms [#permalink] New post 07 Apr 2010, 12:23
and what about A??

it sounds good.
_________________

The sky is the limit
800 is the limit


Get the best GMAT Prep Resources with GMAT Club Premium Membership

Retired Moderator
User avatar
Joined: 01 Oct 2009
Posts: 486
Location: Bangalore,India
WE 1: 4yrs in IT Industry
Followers: 22

Kudos [?]: 112 [0], given: 337

Re: “Big Four” firms [#permalink] New post 07 Apr 2010, 19:20
bit confusing... googled it but dint get any thing much useful....
refer this link.... Feel Option E has a Typo
verbal-test-5-q17-88496.html#p667515
_________________

One Final Try.......

Manager
Manager
avatar
Joined: 14 Apr 2010
Posts: 230
Followers: 2

Kudos [?]: 27 [0], given: 1

Re: “Big Four” firms [#permalink] New post 19 Jul 2010, 21:14
Which category does this question falls into? I got the right answer but i couldn't figure it out.
Senior Manager
Senior Manager
avatar
Joined: 23 May 2010
Posts: 443
Followers: 5

Kudos [?]: 34 [0], given: 112

Re: “Big Four” firms [#permalink] New post 21 Jul 2010, 08:59
it falls nowhere
Senior Manager
Senior Manager
avatar
Joined: 14 Jun 2010
Posts: 334
Followers: 2

Kudos [?]: 15 [0], given: 7

Re: “Big Four” firms [#permalink] New post 02 Aug 2010, 09:55
I feel E looks better!
Re: “Big Four” firms   [#permalink] 02 Aug 2010, 09:55
    Similar topics Author Replies Last post
Similar
Topics:
1 Experts publish their posts in the topic Federal regulations require that corporations use separate a unknown5386 9 07 Apr 2014, 06:47
22 Experts publish their posts in the topic The excessive number of safety regulations that the federal eybrj2 14 29 Feb 2012, 14:15
Federal regulations require that corporations use separate prasun84 9 19 Nov 2008, 10:45
24 Experts publish their posts in the topic Federal regulations require that corporations use separate zonk 48 16 Aug 2008, 06:10
The excessive number of safety regulations that the federal YHP 8 15 Aug 2007, 16:43
Display posts from previous: Sort by

Federal regulations require that corporations use separate

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.