Many of the largest CPA firms are global and perform audits all over the world. Foreign countries have different accounting and auditing rules than the United States
If the CPA firm is performing an audit of a foreign company that trades its stock on a U.S. stock exchange, should the financial statements and the audit conform to U.S. generally accepted accounting principles and auditing rules or the foreign county's rules?
What will be an ideal response?
If a foreign company's stock is traded on a U.S. stock exchange, then the financial statements and the audits of the financial statements should conform to the U.S. rules. Otherwise, it would be very difficult for investors to understand the financial statements and to make comparisons with other U.S. companies.
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Which statement is true regarding IRA distributions?
A) The minimum distribution rules apply to Roth IRAs, but not to traditional IRAs. B) Distributions from a Roth IRA are taxed at the individual's marginal tax rate. C) The IRA penalty tax applies to all traditional IRA distributions before age 59.5 with no exceptions. D) Unless a life annuity is issued, a retiree may still be alive when the IRA account is exhausted.
Holding other things constant, a stock's value will be highest if the investor's required return on investments in equity is
A) 20%. B) 15%. C) 10%. D) 5%.