Which of the Following Is NOT a Requirement of Section

question 12

Multiple Choice

Which of the following is NOT a requirement of Section 10A of the Securities Exchange Act of 1934 for auditors of public companies with respect to illegal acts?

• A) Determine whether it is likely that an illegal act has occurred
• B) Determine what the possible effect of the illegal act is on the financial statements
• C) Determine whether management participated in the illegal act
• D) Inform management and assure that the audit committee knows about any material illegal act that has been detected

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Definitions:

Elastic Portion

The segment of a demand curve where a change in price leads to a more than proportional change in the quantity demanded, indicating high price sensitivity.

Linear Demand

A type of demand where there is a constant relationship between the quantity demanded and price, represented by a straight line on a graph.

Price Inelastic

A situation in which the demand for a good does not change significantly in response to a change in price, indicating that consumers are less sensitive to price changes.

Linear

A term used to describe something that forms a straight line or a process that proceeds in steps of equal increments.