SIE Exam: 1001 Practice Questions For Dummies 1st Edition Steven M. Rice (Author) - Solutions

Discover comprehensive resources for the "SIE Exam: 1001 Practice Questions For Dummies" by Steven M. Rice. Access a wide array of solved problems and chapter solutions, available through our solutions PDF. Enhance your understanding with our step-by-step answers and instructor manual, perfect for both students and instructors. Explore the test bank featuring questions and answers essential for acing your exam. Benefit from the solution manual, offering detailed explanations to each question. Enjoy the convenience of a free download, providing textbook insights and online answers key for a seamless study experience.

With respect to the acceptance of contingent fees for professional services, the IFAC Code of Ethics for Professional Accountants indicates that the accounting firma. Should not accept contingent fees.b. Should establish appropriate safeguards around acceptance of a contingent fee.c. Should accept
If an audit firm discovers threats to independence with respect to an audit engagement, the IFAC Code of Ethics for Professional Accountants indicates that the firm shoulda. Immediately resign from the engagement.b. Notify the appropriate regulatory body.c. Document the issue.d. Evaluate the
Based on the IFAC Code of Ethics for Professional Accountants, threats to independence arise from all of the following except:a. Self interest.b. Advocacy.c. The audit relationship.d. Intimidation.
In relation to the AICPA Code of Professional Conduct, the IFAC Code of Ethics for Professional Accountantsa. Has more outright prohibitions.b. Has fewer outright prohibitions.c. Has no outright prohibitions.d. Applies only to professional accountants in business.
Which statement below is correct concerning communicating the results of a PCAOB inspection?a. The entire report issued by the PCAOB is publicly available.b. The portion of the report issued on a CPA firm’s quality control is not ordinarily publicly available.c. The report issued is only
A PCAOB engagement that focuses on a selected quality control issue is most likely to be referred to as a(n)a. Financial statement audit.b. Inspection.c. Peer review.d. Quality control
The Public Company Accounting Oversight Board(PCAOB) is not responsible for standards related toa. Accounting.b. Attestation.c. Auditing.d. Quality control.
Which of the following is correct concerning membership on the Public Company Accounting Oversight Board?a. Only two of its members may be CPAs.b. It is composed of 9 members.c. All members must also currently be active in public accounting.d. A majority of members must be or have been accounting
The audit partner in charge of an audit of a public company may onlya. Be in charge of the audit of that one company.b. Perform the role as long as he or she also performs the “second partner review” for that audit.c. Perform that role for five consecutive years.d. Perform the role if he or she
Under Title II of the Sarbanes-Oxley Act, the auditor of an issuer cannot legally perform which type of service for that issuer?a. Tax services.b. Review of interim information.c. Internal audit outsourcing services.d. Audit of internal control over financial reporting.
Passage of the Sarbanes-Oxley Act led to the establishment of thea. Auditing Standards Board.b. Accounting Enforcement Releases Board.c. Public Company Accounting Oversight Board.d. Securities and Exchange Commission.
Under the Sarbanes-Oxley Act, most audit working papers must be saveda. 5 years.b. 7 years.c. 10 years.d. Indefinitely as there is no time limitation provided.
Which of the following services is a CPA generally required to perform when conducting a personal financial planning engagement?a. Assisting the client to identify tasks that are essential in order to act on planning decisions.b. Assisting the client to take action on planning decisions.c.
Under the Statements on Standards for Consulting Services, which of the following statements best reflects a CPA’s responsibility when undertaking a consulting services engagement? The CPA musta. Not seek to modify any agreement made with the client.b. Not perform any attest services for the
Which of the following services may a CPA perform in carrying out a consulting service for a client?I. Analysis of the client’s accounting system.II. Review of the client’s prepared business plan.III. Preparation of information for obtaining financing.a. I and II only.b. I and III only.c. II
According to the standards of the profession, which of the following events would require a CPA performing a consulting services engagement for a nonaudit client to withdraw from the engagement?I. The CPA has a conflict of interest that is disclosed to the client and the client consents to the CPA
According to the profession’s standards, which of the following would be considered consulting services?Advisory services Implementation services Product servicesa. Yes Yes Yesb. Yes Yes Noc. Yes No Yesd. No Yes Yes
Which of the following is an authoritative body designated to promulgate attestation standards?a. Auditing Standards Board.b. Governmental Accounting Standards Board.c. Financial Accounting Standards Board.d. General Accounting Office.
Which of the following statements is correct regarding an accountant’s working papers?a. The accountant owns the working papers and generally may disclose them as the accountant sees fit.b. The client owns the working papers but the accountant has custody of them until the accountant’s bill is
Which of the following statements is(are) correct regarding a CPA employee of a CPA firm taking copies of information contained in client files when the CPA leaves the firm?I. A CPA leaving a firm may take copies of information contained in client files to assist another firm in serving that
On June 1, 2008, a CPA obtained a $100,000 personal loan from a financial institution client for whom the CPA provided compilation services. The loan was fully secured and considered material to the CPA’s net worth. The CPA paid the loan in full on December 31, 2009. On April 3, 2009, the client
Kar, CPA, is a staff auditor participating in the audit engagement of Fort, Inc. Which of the following circumstances impairs Kar’s independence?a. During the period of the professional engagement, Fort gives Kar tickets to a football game worth$75.b. Kar owns stock in a corporation that Fort’s
To exercise due professional care an auditor shoulda. Critically review the judgment exercised by those assisting in the audit.b. Examine all available corroborating evidence supporting managements assertions.c. Design the audit to detect all instances of illegal acts.d. Attain the proper balance
According to the ethical standards of the profession, which of the following acts is generally prohibited?a. Purchasing a product from a third party and reselling it to a client.b. Writing a financial management newsletter promoted and sold by a publishing company.c. Accepting a commission for
Larry Sampson is a CPA and is serving as an expert witness in a trial concerning a corporation’s financial statements.Which of the following is(are) true?I. Sampson’s status as an expert witness is based upon his specialized knowledge, experience, and training.II. Sampson is required by AICPA
According to the standards of the profession, which of the following activities may be required in exercising due care?Consulting with experts Obtaining specialty accreditationa. Yes Yesb. Yes Noc. No Yesd. No No
Which of the following reports may be issued only by an accountant who is independent of a client?a. Standard report on an examination of a financial forecast.b. Report on consulting services.c. Compilation report on historical financial statements.d. Compilation report on a financial projection.
According to the standards of the profession, which of the following activities would most likely not impair a CPA’s independence?a. Providing advisory services for a client.b. Contracting with a client to supervise the client’s office personnel.c. Signing a client’s checks in emergency
Stephanie Seals is a CPA who is working as a controller for Brentwood Corporation. She is not in public practice.Which statement is true?a. She may use the CPA designation on her business cards if she also puts her employment title on them.b. She may use the CPA designation on her business cards as
May a CPA hire for the CPA’s public accounting firm a non-CPA systems analyst who specializes in developing computer systems?a. Yes, provided the CPA is qualified to perform each of the specialist’s tasks.b. Yes, provided the CPA is able to supervise the specialist and evaluate the
According to the profession’s ethical standards, which of the following events may justify a departure from a Statement of the Governmental Accounting Standards Board?New legislation Evolution of a new form of business transactiona. No Yesb. Yes Noc. Yes Yesd. No No
According to the ethical standards of the profession, which of the following acts is generally prohibited?a. Issuing a modified report explaining a failure to follow a governmental regulatory agency’s standards when conducting an attest service for a client.b. Revealing confidential client
The profession’s ethical standards most likely would be considered to have been violated when a CPA represents that specific consulting services will be performed for a stated fee and it is apparent at the time of the representation that thea. Actual fee would be substantially higher.b. Actual
According to the standards of the profession, which of the following circumstances will prevent a CPA performing audit engagements from being independent?a. Obtaining a collateralized automobile loan from a financial institution client.b. Litigation with a client relating to billing for consulting
Which of the following is a “self review” threat to member independence?a. An engagement team member has a spouse that serves as CFO of the attest client.b. A second partner review is required on all attest engagements.c. An engagement team member prepares invoices for the attest client.d. An
Which of the following is an example of a safeguard implemented by the client that might mitigate a threat to independence?a. Required continuing education for all attest engagement team members.b. An effective corporate governance structure.c. Required second partner review of an attest
For which of the following can a member of the AICPA receive an automatic expulsion from the AICPA?I. Member is convicted of a felony.II. Member files his own fraudulent tax return.III. Member files fraudulent tax return for a client knowing that it is fraudulent.a. I only.b. I and II only.c. I and
Which of the following best describes what is meant by the term generally accepted auditing standards?a. Rules acknowledged by the accounting profession because of their universal application.b. Pronouncements issued by the Auditing Standards Board.c. Measures of the quality of the auditor’s
Mike Nugent and his wife, Mary, have individual accounts with ABCDE broker-dealer.Along with their individual accounts, they also have a joint account with rights of survivorship. Mike’s individual account has $200,000 of stock, $50,000 of bonds, and $200,000 of cash. Mary’s individual account
You have a new client who is going to open an individual cash account and an individual margin account in their name. At the same time, the client also wants to open a joint account with a spouse, a joint account with a son, and a corporate account. How many separate accounts is the investor
SIPC provides coverage for which of the following securities held in a customer’s account?(A) Common stock(B) Municipal bonds(C) REITs(D) All of the above
SIPC protects each separate customer up to(A) $500,000 in cash and securities with no more than $250,000 cash(B) $500,000 in cash and securities with no more than $100,000 cash(C) $400,000 in securities and $100,000 cash(D) $500,000 in securities and an additional$250,000 cash
The FDIC covers each(A) depositor for up to $250,000(B) investor for up to $250,000(C) depositor for up to $500,000(D) investor for up to $500,000
Which of the following is TRUE about SIPC?(A) It is an agency of the U.S. government.(B) Investment advisers are required to be members of SIPC.(C) Banks selling municipal securities must be SIPC members.(D) SIPC funding is made by member assessments.
A client is on an overseas trip and wishes for the brokerage firm to hold their confirmations and account statements until they return. Which of the following is TRUE regarding holding a client’s mail?(A) This is not allowed under any circumstances.(B) This is allowed only with permission from
Business continuity plans (BCPs) must be reviewed(A) annually by a principal of the firm(B) semiannually by a principal of the firm(C) annually by FINRA(D) as needed by FINRA
As part of FINRA’s business continuity plan, member firms must provide the emergency contact information for __________ principal(s) of the firm to contact in the event of an emergency.(A) one(B) two(C) three(D) all
Which TWO of the following are the maximum penalties for insider trading violations?I. 20 years in prison per violation II. 25 years in prison per violation III. $5 million per individual per violation IV. $30 million per individual per violation(A) I and III(B) I and IV(C) II and III(D) II and IV
The CEO of OEC Corporation tells a lifelong friend that OEC will be announcing an acquisition of COE, Inc., the following week.The friend acts on this knowledge and purchases shares of COE and shorts OEC. Who violated insider trading rules?(A) The CEO(B) The lifelong friend(C) Both the CEO and the
Which of the following is liable if a trade is made on material nonpublic information?(A) The tippee(B) The tipper(C) Both (A) and (B)(D) Neither (A) nor (B)
Which of the following are TRUE statements regarding civil penalties that may be imposed for insider trading violations?I. Civil penalties may be imposed only on registered persons.II. The civil penalty may be up to three times the profit gained or the loss avoided on an illegal transaction.III. A
Which of the following investors are contemporaneous traders who can sue insiders in court for insider trading violations?I. Buyers who purchased stock at the time that insiders were buying II. Buyers who purchased stock at the time insiders were selling the stock III. Sellers who sold stock at the
A client is the CEO of ABC Corporation, which is going under some significant changes. The CEO shares some information with their registered regarding those changes. Which of the following could be considered inside information?I. Changes in the management of ABC II. Undisclosed financial
Judging by a client’s trading pattern, you have a very strong suspicion that they are trading on inside information. You should(A) contact a principal immediately(B) contact the SEC and send it supporting documentation(C) contact FINRA and send it supporting documentation(D) all of the above
One of your customers has made three cash deposits into their account over the last few weeks of $9,900 each. This is called(A) structuring(B) layering(C) integration(D) placement
You are in the process of opening a new account. Which of the following indications of money laundering should you be concerned with?I. Irrational transactions that are inconsistent with the potential client’s investment objectives II. A reluctance to provide information about business activities
A customer is about to open a new account.Which of the following indicates that your new customer may be interested in laundering money?(A) A concern with U.S. government reporting requirements(B) A reluctance to inform you of their business activity(C) A first trade that is inconsistent with their
Which of the following transactions are considered structured?I. Mr. and Mrs. Jones each transfer$9,500 to their joint account on the same day.II. Mr. Smith wiring $9,000 to an account on three separate occasions during the same week.III. Mrs. Jones and Mr. Smith each wiring$9,000 to each of their
Which of the following establishes the U.S. Treasury Department as the regulator for anti-money-laundering programs?(A) The Bank Secrecy Act(B) OFAC(C) SDN(D) None of the above
Which of the following transactions require the filing of Form 112 with FinCEN?(A) A check deposit of $35,000(B) A credit card transaction of $20,000(C) A cash deposit of $15,000(D) All of the above
All of the following are stages of money laundering EXCEPT(A) placement(B) intermediation(C) layering(D) integration
An investor making several large cash deposits into their brokerage account may indicate that they are engaged in(A) money laundering(B) insider trading(C) front-running(D) a takeover
All brokerage firms are required to have customer identification programs and to check the names of any new customers against(A) the SDN list maintained by OFAC(B) the SDN list maintained by the Department of Treasury(C) the SDN list maintained by the Secret Service(D) the SDN list maintained by
Mr. Smith buys 1,000 shares of HIJ common stock at $22 per share. Several months later, HIJ is trading at $20.40–$20.55, and the registered representative offers to purchase back the shares for their own account at $22 per share. This procedure is(A) permitted by FINRA under certain
Which of the following is a violation that includes a form of market manipulation?(A) Commingling(B) Frontrunning(C) Pump and dump(D) Interpositioning
When FINRA is considering the possibility that a brokerage account is being churned, all of the following are considered EXCEPT(A) the profit or loss(B) the amount of trades(C) the client’s investment objectives(D) the amount of money in the client’s account
All of the following are considered violations EXCEPT(A) frontrunning(B) hypothecation(C) signatures of convenience(D) interpositioning
Which of the following is selling dividends?(A) A registered representative encouraging investors to withdraw reinvested mutual fund dividends to purchase more securities so that the registered representative will make more commission(B) A registered representative encouraging clients to sell stock
All of the following are acceptable contributions from a registered rep to a client EXCEPT(A) a baby shower gift of $80(B) a gift of theatre tickets for a client and daughter for a total of $250(C) a gift of football game tickets for$300 where the rep will attend with the client(D) a gift card for
Matching orders is(A) combining fully paid securities and margined securities to use as collateral(B) the illegal manipulation of a security(C) bringing in a third party to execute a trade(D) buying securities with no intention of paying for the trade
A client purchases a security and sells it shortly after without ever making a payment. This is a violation called(A) matching orders(B) freeriding(C) commingling(D) interpositioning
Which of the following are violations?(A) Commingling of funds(B) Interpositioning(C) Signatures of convenience(D) All of the above
The prohibited action of mixing a customer’s securities with the account of the broker-dealer is called(A) free riding(B) hypothecation(C) commingling(D) conjoining
The 5% markup policy applies to(A) riskless or simultaneous transactions(B) markups and markdowns on stock sold from and purchased for a firm’s inventory(C) commissions charged when executing trades for a customer(D) all of the above
Municipal finance professionals may make campaign contributions to a municipal candidate they’re allowed to vote for up to _________ per election.(A) $100(B) $250(C) $500(D) $1,000
All of the following are important factors when determining the markup or commission on a municipal bond trade EXCEPT(A) the fact that you and the firm you work for are entitled to make a profit(B) the difficulty of the trad(C) the 5% policy(D) the market value of the securities at the time of the
The 5% markup policy applies to which of the following over-the-counter transactions?(A) Securities sold with a prospectus(B) Municipal bond transactions(C) Sales of outstanding shares of corporate stock(D) Mutual fund purchases
All of the following may be factors used in determining the markup charged to a customer EXCEPT(A) dealer cost(B) the market price of the security(C) the size of the trade(D) expenses of executing the trade
The 5% markup policy applies to which of the following types of secondary market transactions?(A) Riskless or simultaneous transactions(B) Common stock sold from a dealer’s inventory(C) Proceeds transactions on non-exempt securities(D) All of the above
The 5% markup policy applies to which of the following?(A) IPOs(B) The sale of mutual fund shares(C) Regulation D offerings(D) The over-the-counter sale of outstanding non-exempt securities
Under FINRA rules, a brokerage firm must keep trade confirmations, order tickets, and advertisements for a minimum of(A) two years(B) three years(C) four years(D) six years
Broker-dealer records must be kept easily accessible for at least(A) six months(B) two years(C) three years(D) six years
Under FINRA rules, all of the following brokerage firm records must be kept for a minimum of three years EXCEPT(A) ledgers(B) trade confirmations(C) order tickets(D) U-4 forms of former employees
Under FINRA rules, which of the following records must be kept by a brokerage firm for a minimum of six years?I. Customer account statements II. U-5 forms III. Records of all trades executed IV. Sales literature(A) I, II, and III(B) II, III, and IV(C) I and III(D) I, II, and IV
Which of the following records must be maintained by brokerage firms for six years?I. Ledgers II. Closed accounts III. U-4 forms of terminated employees IV. Blotters(A) I and III(B) II, III, and IV(C) I, II, and III(D) I, II, and IV
A broker-dealer must keep corporate or partnership documents for(A) two years(B) three years(C) six years(D) a lifetime
Simplified arbitration is used to resolve disputes for up to(A) $10,000(B) $25,000(C) $50,000(D) $100,000
In which of the following procedures for handling complaints is the decision binding and cannot be appealed?(A) Code of procedure(B) Mediation(C) Arbitration(D) Both (B) and (C)
All of the following is TRUE about arbitration EXCEPT(A) members may take non-members to arbitration(B) non-members may take members to arbitration(C) members may take other members to arbitration(D) decisions are binding and non-appealable
Which of the following disputes must be resolved using arbitration?I. A dispute between a FINRA member and a registered representative II. A dispute between a FINRA member and a customer III. A dispute between two FINRA members IV. A dispute between a FINRA member and a bank(A) I, III, and IV(B) I
Retail communications must be(A) approved by a principal of the firm(B) filed with FINRA at least 10 business days prior to first use(C) made available to more than 25 retail investors within a 30-day period(D) all of the above
FINRA divides communication into which of these three categories?(A) Commercial, institutional, and retail(B) Institutional, retail, and correspondence(C) Written, verbal, and text(D) Industrial, commercial, and retail
Which of the following are TRUE regarding arbitration and mediation?(A) Arbitration and mediation decisions are both appealable.(B) Arbitration and mediation decisions are both binding and non-appealable.(C) Arbitration decisions are binding and non-appealable, but mediation decisions are
Nothing but Net Broker-Dealer doesn’t require their customers to sign an arbitration agreement. One of their customers believes money was stolen from their account and decides to take Nothing but Net to litigate it through code of procedure.Who has the first jurisdiction over the complaint?(A)
Miesha Silva has written a letter of complaint regarding a recent purchase of blue chip stocks to their broker-dealer.Upon receipt of the complaint, the broker-dealer must(A) return the commission charged(B) accept the complaint and write down any action taken(C) guarantee to make Miesha whole(D)
Zimbot Corp. has just announced a 30-cent dividend to shareholders of record. If the record date is Friday, October 8, when is the first day an investor can purchase the stock and not receive the dividend?(A) Wednesday, October 6(B) Thursday, October 7(C) Friday, October 8(D) Monday, October 11
Mutual funds must send out financial statements to shareholders at least(A) monthly(B) quarterly(C) semiannually(D) annually
The SEC and FINRA require that customer account statements be sent out at least(A) every time a trade takes place(B) monthly(C) semiannually(D) quarterly
The ex-dividend date is _______ business day(s) before the record date.(A) one(B) two(C) three(D) five
The ex-date is(A) the date on which the corporation ceases paying a dividend(B) the date on and after the date the seller is entitled to the dividend(C) the third business day before the record date(D) the day the stock price is increased by the amount of the dividend

Showing 4300 - 4400 of 8740

First
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
Last

SIE Exam: 1001 Practice Questions For Dummies 1st Edition Steven M. Rice (Author) - Solutions

Step by Step Answers