[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:

Early Childhood

A crucial developmental period in a human's life, typically considered to cover the preschool years up to age eight.

Posttraumatic Stress Disorder

A condition affecting mental health, provoked by direct experience or seeing a frightening event, noted for its flashback episodes, bad dreams, and significant anxiety levels.

Distressing Dreams

Dreams that cause feelings of fear, sadness, or anxiety in the dreamer.

Intrusive Memories

Unwanted, involuntary memories that repeatedly enter an individual's mind, often related to traumatic events.