Which of the Following Statements Regarding Auditors Is FALSE

question 41

Multiple Choice

Which of the following statements regarding auditors is FALSE?

• A)The Sarbanes-Oxley Act called on the SEC to force companies to have audit committees that are dominated by outside directors and required that at least one outside director have a financial background.
• B)Whether information is material has been defined in the courts as referring to whether the information would have been a significant factor in an investor's decision about the value of the security.
• C)CEOs and CFOs must return bonuses or profits from the sale of stock or the exercise of options during any period covered by statements that are later restated.
• D)The law is especially strict with regard to takeover announcements,prohibiting any insider,but not outsiders,with nonpublic information about a pending or ongoing tender offer from trading on that information or revealing it to someone who is likely to trade on it.

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Definitions:

Retinal Image

The image formed on the retina of the eye, where light-sensitive cells convert it into neural signals for the brain to interpret as visual information.

Linear Perspective

A technique in visual art and photography that creates the illusion of depth on a flat surface, indicating that objects appear smaller as they recede in space.

Parallel Lines

Lines in a plane that never meet, no matter how far they are extended.

Ambiguous Figure

A visual image that can be understood or interpreted in more than one distinct way.