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:

Compulsive Masturbator

An individual who engages in masturbation with such frequency and intensity that it causes significant distress or impairment in daily functioning.

Phallic

Pertaining to the phallus or penis, often used in psychoanalytic theory to describe the stage of psychosexual development focused on the genital organs.

Latency

The period of delay before a response or the onset of a disease after exposure to a stimulus or pathogen.

Genital

Relating to the reproductive organs; also used to describe the phase of psychosexual development in psychoanalytic theory that focuses on the genitals.