The Private Securities Litigation Reform Act Imposes Additional Requirements on Public

question 43

Multiple Choice

The Private Securities Litigation Reform Act imposes additional requirements on public companies reporting to the SEC and their auditors when:

• A) The illegal act has a material effect on the financial statements
• B) Senior management and the board have not acted properly to correct for the act
• C) The failure to correct for the action is reasonably expected to warrant a departure from the standard audit report
• D) All of the above are additional requirements

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Definitions:

Degree of Uncertainty

The extent to which outcomes or consequences are unknown or unpredictable.

Decision Confidence

The level of sureness an individual or group has regarding the choices they make, often impacting the decisiveness of their actions.

Reliable Information

Information that is accurate, verified, and trustworthy, enabling informed decision-making.

Condition of Risk

The presence of uncertainty regarding the outcome of an action or decision, potentially influencing the achievement of organizational or personal goals.