Self-assessment exam Catalyst--July/August 2003.

Self-Assessment Exam Catalyst--July/August 2003

Answer Sheet

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* This exam must be received by
The Ohio Society by July 1, 2004.
Exams postmarked after July 1, 2004
will be returned.

The self-assessment exam is provided as a convenient method for CPAs
to earn CPE credit by reading Catalyst: The Leading Edge of Ohio
Business. The exam consists of 25 multiple-choice questions covering
information included in articles and columns in this issue of
Catalyst. Those who complete the exam and return the answer sheet
to The Ohio Society for grading, and earn a grade of 75 percent or
better, will receive two (2) hours of CPE credit. Permission to
provide CPE credit has been granted by the Accountancy Board of Ohio.

The costs for the self-assessment exam are as follows:

              ONLINE   PRINT

MEMBERS         $25     $30
NON-MEMBERS     $35     $40

The grading process is handled in a confidential manner. Respondents
will be notified by e-mail of their exam results.

Print Instructions

1. Detach the exam insert from Catalyst and tear along the center
   perforation.

2. Take the exam as an open-book test, recording your answers on
   the answer sheet by filling in the appropriate circle
   (pen or pencil is fine).

3. Then, write your name, SSN and phone number on the lines directly
   below. Please print clearly.

4. Please include payment with the exam: $30 for members, $40 for
   non-members.

   Make checks payable to: The Ohio Society of CPAs.

5. Mail this page, along with your payment, in an envelope to:

The Ohio Society of CPAs
Catalyst Exam
P.O. Box 1810
Dublin, OH 43017-7810

Online Instructions

1. Go to www.ohioscpa.com.

2. Click on the "CPE" tab; then click on "CPE Options."

3. Click on the link for "Self-Study Options," and then
   "Self-Assessment Exams." This will provide links to
   all the active exams.

4. Complete the exam and click "Submit" when you are finished.

5. Print the confirmation for your records.

Name (last name first): --

Phone (daytime): --

SSN: --

E-mail: --

Self Assessment Exam Results

The Ohio Society sends test results via e-mail. Please provide
a current e-mail address in the space provided. Respondents who
passed with a grade of 75 percent or better qualify for two
hours of CPE credit in specialized knowledge, as approved by
the Accountancy Board of Ohio.

Catalyst Reader Critique

What do you think of the layout of Catalyst?

a. Very easy to navigate
b. Easy to navigate
c. Somewhat easy to navigate
d. Not easy to navigate

How useful do you consider the information presented in Catalyst?

a. Very useful
b. Useful
c. Somewhat useful
d. Not useful

How pertinent to your professional responsibilities do you consider
the information presented in Catalyst?.

a. Very pertinent
b. Pertinent
c. Somewhat pertinent
d. Not pertinent

How timely do you consider the information presented in Catalyst?

a. Very timely
b. Timely
c. Somewhat timely
d. Not timely

How would you rate the depth of the articles?

a. Very in-depth
b. In-depth
c. Slightly in-depth
d. Not in-depth

How would you rate the length of the articles in Catalyst?

a. Too long
b. Too short
c. Just right

Which article or department column did you find most useful in
this issue?

(Please circle all that apply.)

a. Cover Story: Sarbanes-Oxley One Year Later: The Impact on You
b. Budget Update, Impacts of ...
c. The Controversy Over Stock Options
d. Staying Within the Network: Assembling Your Referral Team
e. Accounting Education: Changing Skill Sets to Meet Modern Needs
f. HR Spotlight
g. Nonprofit Recovery Starts During Budget Season
h. Business Bytes
i. Capitol Access
j. Steal This Idea

If you found any article or department column not useful at all,
please circle all that apply.

a. Cover Story: Sarbanes-Oxley One Year Later: The Impact on You
b. Budget Update, Impacts of...
c. The Controversy Over Stock Options
d. Staying Within the Network: Assembling Your Referral Team
e. Accounting Education: Changing Skill Sets to Meet Modern Needs
f. HR Spotlight
g. Nonprofit Recovery Starts During Budget Season
h. Business Bytes
i. Capitol Access
j. Steal This Idea

What is your overall evaluation of this issue of Catalyst?

a. Excellent
b. Good
c. Fair
d. Poor

What particular issues would you like to see addressed in future
editions of Catalyst?

What type of articles would you like to see in future editions of
Catalyst?

What can Catalyst do to improve?

Exam Questions for Catalyst--July/August, 2003

(Please choose the best answer to each question)

A Year in the Life of Sarbanes-Oxley: The Impact on You

1. Which function did the new Public Company Accounting Oversight
Board (PCAOB) assume during April 2003?

a. The authority to appoint the Federal Reserve Chairman.
b. The authority to set accounting standards for publicly and
   non-publicly traded firms.
c. The authority to set auditing standards for the companies it
   oversees.
d. The authority to de-list publicly traded firms.

2. Until the PCAOB implements its own rules, the AICPA's standards
will:

a. No longer apply to publicly traded firms.
b. Apply selectively to all firms.
c. Apply selectively to publicly traded firms.
d. Serve as interim guidelines for accounting firm interactions
   with publicly traded firms.

3. Which body will set auditing standards for non-publicly traded
companies after the PCAOB adopts its own set of standards?

a. The AICPA.
b. The SEC (Securities and Exchange Commission).
c. The Internal Revenue Service.
d. The Accountancy Board.

4. Chuck Landes, director of audit and attest services for the
AICPA, believes that two big question marks are associated with
the existence of the PCAOB. These include:

a. Whether the GAO (General Accounting Office) will continue to
   use AICPA standards or switch to those adopted by the PCAOB.
b. Whether the SEC (Securities and Exchange Commission) will continue
   to use AICPA standards or switch to those adopted by the PCAOB.
c. Whether the Accountancy of Board of Ohio will continue to use AICPA
   standards or switch to those adopted by the PCAOB.
d. Both a and c are correct.

5. Currently the State of New York has legislation that potentially
extends the provisions of Sarbanes-Oxley to:

a. Non-profit organizations with budgets of $100,000.
b. Private companies with less than 10 employees and gross annual
   revenues of $1 million.
c. Non-profit organizations with budgets of $250,000.
d. All non-publicly traded corporations.

6. Starting with the fall of 2004, the Accountancy Board of Ohio
will require CPAs to earn:

a. 6 CPE hours in ethics.
b. 3 CPE hours in ethics.
c. 12 CPE hours in ethics.
d. 1 hour of CPE in ethics.

7. William Ezzel, chair of the AICPA Board of Directors, cited several
changes that auditors, audit firms and audit clients of publicly traded
companies will face because of Sarbanes-Oxley. These include:

a. Mandated auditor rotation.
b. Limitations on non-audit fees.
c. A new audit standard setting process.
d. All of the above.

8. Based on statistics provided in the article, the number of CPA
firms in the country that are registered with the SEC's Practice
Section totals:

a. 1,200.
b. 2,000.
c. 2,400.
d. 45,000.

9. Based on statistics cited in the article, the number of CPA
firms with SEC-registered clients totals:

a. 1,200.
b. 800.
c. 300.
d. 600.

The Controversy Over Stock Options

10. As of April 2003, both the FASB and the International Accounting
Standards Board have both stated their intentions that employee stock
options be accounted for as a (an):

a. Expense.
b. Deferred expense.
c. Equity offset.
d. Deferred Liability.

11. According to the authors, the accounting for employee stock
options is generally governed by the standards found in:

a. APB (Accounting Principles Board) Opinion 20, issued in 1970.
b. APB Opinion 25, issued in 1972.
c. SFAS (Statement of Financial Accounting Standards) 123.
d. SFAS 110.

12. According to the authors, those currently opposed to changes in the
accounting for stock options believe that:

a. Existing stock option pricing models, like Black-Scholes and the
   binomial model, do not provide accurate estimates of the wage
   expense associated with the options.
b. Mandated expensing of employee stock options would destroy
   broad-based employee option plans and the productivity, innovation
   and economic growth these plans generate.
c. The cost of employee stock options is already reported in the
   corporate financial statements.
d. All of the above.

13. According to the authors, numerous small-cap firms have voluntarily
begun expensing stock options in the manner suggested by SFAS 123.
Some of the reasons why these small firms are expensing options
include:

a. Their need to provide clarification to shareholders.
b. Their perception that the expensing of options will be viewed as
   unfavorable by Wall Street.
c. Their need to meet exacting standards of banks and other regulators.
d. The need to mimic the large companies.

14. According to Bloomberg, the expensing of stock options in 2001
by the Standard and Poors 500 would have resulted in additional
compensation being recognized by these firms. How much would total
compensation for these firms have increased?

a. $10 million.
b. $10 billion.
c. $74 billion.
d. $100 billion.

Staying within the Network: Assembling your Referral Team

15. The author suggests that one key to generating continuing business
for the practicing CPA is a good:

a. Advertising campaign.
b. Referral network.
c. Client base.
d. Working relationship with the Accountancy Board of Ohio.

16. The authors identify two distinct types of networking. These
include:

a. The "casual contact" sourcing model and the "strong contact" model
   of networking.
b. The informal referral sourcing model and the "big bang" model of
   networking.
c. The "big bang" model of networking and the limited source referral
   model.
d. The accountant model of networking and the formal resource model of
   networking.

Accounting Education: What Practitioners Need to Know about the Next
Generations' Skill Set

17. The Accounting Education Change Commission identified several
capabilities that accounting graduates should possess. These included:

a. Skills (communication, intellectual and interpersonal).
b. Knowledge (general, organizational, and accounting).
c. Professional orientation (values and ethics).
d. All of the above.

18. According to the authors, accounting classes are tending toward
more of an overview approach, emphasizing:

a. Specific details, rather than a conceptual understanding.
b. Conceptual understandings, rather than focusing on specific
   details.
c. Coverage of more material, rather than focusing on a core set
   of chapters.
d. Coverage of fewer book chapters.

Nonprofit Recovery Starts During Budget Season

19. When analyzing a budget, the author suggests the need to:

a. Foot and cross-foot totals.
b. Use statistics.
c. Interview those preparing the budget.
d. Be actively involved in the preparation of the budget.

20. An r squared (RSQ) of 1.00 means that:

a. All historical data points reside on the same straight line.
b. All historical data points are valid numbers.
c. All historical data points have the same distribution.
d. All historical data points have the same expected values.

Incorporating the Use of Handhelds in Corporate Culture

21. Smartphone technology combines what three features?

a. Web, paging and calling capabilities.
b. E-mail, paging and calling capabilities.
c. E-mail, calling capabilities and instant messaging.
d. Web, e-mail and calling capabilities.

22. What is the number one feature of the Palm Tungsten?

a. Built-in QWERTY keyboard.
b. One of the fastest processors in a PDA.
c. One of the first PDAs to be backlit.
d. A 65,000 color display on a trans-reflective TFT LCD screen.

E-mail 101--Basic E-mail Etiquette

23. In e-mailing, think of the subject line as a

a. Teaser.
b. Summary of content.
c. Topic of discussion.
d. Headline.

Tablet PCs: The Marriage of Handhelds and Laptops

24. According to the author, what will be required for tablets to
become more accepted for the business mainstream?

a. Reduced price, faster start-up times, and longer battery lives.
b. Reduced price, lighter weight, larger screens.
c. Reduced price, more memory, longer battery lives.
d. Reduced price, better handwriting recognition, faster start-up
   times.

25. According to the author, what has been the most significant
benefit of the tablet PC?

a. Portability.
b. Easier to taking notes in meetings.
c. Increased speed.
d. High-quality graphics.

A grade of 75 percent or better qualifies for two hours of CPE
credit in specialized knowledge.

Answers--Self-Assessment Exam

Ohio CPA Journal--April-July 2002

1. b. 2. c. 3. d. 4. a. 5. d. 6. b. 7. a. 8. c. 9. d. 10. d. 11. a. 12. c. 13. d. 14. b 15. a. 16. c. 17. a. 18. d. 19. b. 20. d. 21. d. 22. b. 23. a. 24. d. 25. a.