Events & Promotions
|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Aug 2710:00 AM EDT
-11:00 AM EDT
We’ve worked incredibly hard to build TTP into the best test prep experience possible, and it would mean a lot to us to win Newsweek’s 2026 Readers’ Choice Award for Best Test Prep. If TTP has helped you, we’d be incredibly grateful for your vote.
Sep 0410:00 AM PDT
-11:00 AM PDT
What does test anxiety really look like on the GMAT? For many test takers, it does not look like a panic attack. Instead, it shows up as brain fog, rereading, negative comparisons, mental noise....
Sep 0609:30 AM EDT
-12:30 PM EST
Top scores are possible when you enroll in a powerful EA course, taught live online + 6 months access to TTP OnDemand video courses included! Perfect class schedule and easy course access for working professionals. Class starts Sundays Sept. 6, 2026.- Sep 07
12:01 AM PDT
-11:59 PM PDT
On the 7th, GMAT Club Tests will be Free! Including all the Quizzes, Questions, and Tests. 12 AM - 11:59 PM PDT - Sep 09
07:00 AM PDT
-10:00 AM PDT
Meet AdComs and explore top Master’s programs - MiM, MiF, MSc, MSBA and more. - Application Fee Waivers - Free 1-Week of GMAT Club Tests: - Master's Application Toolkit - Grand Prize Giveaway 
Sep 1507:00 PM EDT
-09:00 PM EST
Elite scores are possible when you enroll in a powerful GMAT course, taught live online + 6 months access to TTP OnDemand video courses included! Class starts Tues/Thurs Sept. 15, 2026 - Nov. 15, 2027, 7:00pm-9:00pm EST
Sep 2108:00 PM EDT
-10:00 PM EDT
Boost your GMAT score in less than one month in a live online class + 6 months access to TTP OnDemand video courses included! Class starts Mon, Tues, Wed, Thur, Fri Sept. 21, 2026 - Oct. 9, 2027, 7:00pm-10:00pm EST
22 Jun 2014, 14:17
Kudos
Bookmarks
V05-17
My commentary re: the type below END SOLUTION tag...
===Original Question===
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?
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.
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.
==Provided Solution==
Situation: A group of CEOs has proposed that the Big Four accounting firms be broken into smaller firms so that corporations will have more options for audit and non-audit services.
Reasoning: Which added provision will help assure the success of the CEOs’ plan? The CEOs suggest breaking up the Big Four firms so that corporations can have more choices for their audit and non-audit services, which must, by federal regulation, not be performed by the same firm. Anything that further insures that audit and non-audit services will be kept separate in breaking up the firms will also assure that CEOs will get the added variety they are seeking.
A) This option does not directly impact the question of variety.
B) The origin of new CEOs does not deal with variety or with the separating of audit and non-audit services.
C) This provision specifies what decisions corporations may be allowed to make, but it does not insure variety.
D) This option does not directly impact the question of variety.
E) If each Big Four firm breaks into two – one performing audit services, and one performing non-audit services – then the field will have gained the variety sought by CEOs.
The correct answer is E
==END SOLUTION==
I agree with the logic of selecting E). However, when the question is asked, it appears there's a type that takes "E" out as a rational response.
My commentary re: the type below END SOLUTION tag...
===Original Question===
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?
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.
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.
==Provided Solution==
Situation: A group of CEOs has proposed that the Big Four accounting firms be broken into smaller firms so that corporations will have more options for audit and non-audit services.
Reasoning: Which added provision will help assure the success of the CEOs’ plan? The CEOs suggest breaking up the Big Four firms so that corporations can have more choices for their audit and non-audit services, which must, by federal regulation, not be performed by the same firm. Anything that further insures that audit and non-audit services will be kept separate in breaking up the firms will also assure that CEOs will get the added variety they are seeking.
A) This option does not directly impact the question of variety.
B) The origin of new CEOs does not deal with variety or with the separating of audit and non-audit services.
C) This provision specifies what decisions corporations may be allowed to make, but it does not insure variety.
D) This option does not directly impact the question of variety.
E) If each Big Four firm breaks into two – one performing audit services, and one performing non-audit services – then the field will have gained the variety sought by CEOs.
The correct answer is E
==END SOLUTION==
I agree with the logic of selecting E). However, when the question is asked, it appears there's a type that takes "E" out as a rational response.
Quote:
To use the same logic as in the solution: Although the Big Four firms are dividing, the fact that the audit- and non-audit sections ARE NOT broken up in (E) does nothing for variety.
Archived Topic
Hi there,
Archived GMAT Club Tests question - no more replies possible.
Where to now? Try our up-to-date Free Adaptive GMAT Club Tests
for the latest questions.
Still interested? Check out the "Best Topics" block below for better discussion and related questions.
Thank you for understanding, and happy exploring!
10 Jul 2014, 01:25
Kudos
Bookmarks
e) The Big Four firms should divide so that the audit and non-audit sections are not broken up.
I don't get it.
I think if e is the answer, it should change to:
e) The Big Four firms should divide so that the audit and non-audit sections are broken up.
Help!
I don't get it.
I think if e is the answer, it should change to:
e) The Big Four firms should divide so that the audit and non-audit sections are broken up.
Help!
Archived Topic
Hi there,
Archived GMAT Club Tests question - no more replies possible.
Where to now? Try our up-to-date Free Adaptive GMAT Club Tests
for the latest questions.
Still interested? Check out the "Best Topics" block above for better discussion and related questions.
Thank you for understanding, and happy exploring!
Moderator:
