Verbal Test 5, Q17 : Retired Discussions [Locked]
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# Verbal Test 5, Q17

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Joined: 29 Jul 2009
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28 Dec 2009, 09:08
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.

I think there is a typo and E should say "The Big Four firms should divide so that the audit and non-audit sections are broken up."
Verbal Test 5, Q17   [#permalink] 28 Dec 2009, 09:08
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# Verbal Test 5, Q17

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