Which of the Following Would not Be Considered an Internal

question 126

Multiple Choice

Which of the following would not be considered an internal user of accounting data for the Xanadu Company?

• A)President of the company
• B)Production manager
• C)Merchandise inventory clerk
• D)President of the employees' labor union

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Definitions:

Audit Liability

The legal responsibility auditors face for failing to detect or report inaccuracies in financial statements.

Securities Exchange Act

A U.S. federal law enacted in 1934 to govern the trading of securities, such as stocks and bonds, in the secondary market, aiming to promote transparency, fairness, and integrity in the marketplaces.

SEC Rule 10b-5

A regulation by the Securities and Exchange Commission that prohibits fraud and misrepresentation in securities trading.

Privity

A doctrine in contract law that holds that contracts are private agreements between the parties who have mutually consented to them, and thus, only those parties have the rights and liabilities under the contract.