Which of the Following Was NOT a Finding of the Cadbury

question 9

Multiple Choice

Which of the following was NOT a finding of the Cadbury Commission?

• A)Audit and compensation committees should be made up entirely of independent directors or,at least,have a majority of them.
• B)Auditors should be rotated,and there should be fuller disclosure of non-audit work.
• C)The CEO should not be chairman of the board,and at the very least there should be a lead independent director with similar agenda-setting powers.
• D)The CEO and the CFO should personally attest to the accuracy of the financial statements presented to shareholders.

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Definitions:

Intelligence

A measure of one’s ability to acquire and apply knowledge.

Differential Item Functioning

A phenomenon where different groups of test-takers respond differently to a particular test item, not due to differences in the trait being measured but due to some other characteristic.

Construct

An abstraction that cannot be seen directly but is valued because it helps organize the myriad of potential observations in the real world.

Content Bias

A condition which occurs when testing materials are more familiar to one group than another.