[BigCom Securities] A&Z and DCB, Two Large Accounting Firms, Prepared

question 24

Multiple Choice

[BigCom Securities] A&Z and DCB, two large accounting firms, prepared registration statements for BigCom, a large, public company, and provided information on BigCom to the SEC. A&Z's statements contained several misrepresentations about BigCom's securities. Wallace, BigCom's Chairman of the Board of Directors, signed the statements prior to the SEC filing. As is the usual procedure, Wallace signed the statements but did not read them carefully. He heard there were some questionable issues about the quality of the statements, but he felt confident with the expertise of the large accounting firms. Subsequently, purchasers of BigCom claimed there were misrepresentations about BigCom's shares in the statements filed with the SEC and sued A&Z, DCB, and Wallace. All three defendants deny liability.
-Belinda was hired as a security expert for a local accounting firm. She looks through the different policies and concludes that her new accounting firm needs a[n] ________ liability insurance policy to protect the company because they do business in the cloud.

• A) i-Cloud
• B) virtual storage
• C) online security
• D) data analytic
• E) cyber

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Definitions:

Vertical Integration

A business strategy where a company owns or controls its suppliers, distributors, or retail locations to control its supply chain and reduce costs.

Film Industry

The sector of the economy dedicated to the production, distribution, and exhibition of films and movies.

Buddy-Cop Comedy

A film genre which pairs two mismatched law enforcement officers, combining action and humor in their adventures and relationship.

Silent Film Stars

Actors and actresses who gained fame during the era of silent films, before the widespread adoption of synchronized sound in cinema, known for their expressive acting techniques to convey emotion and narrative without dialogue.