The Need to Implement Philosophies and Practices Commonly Referred to as "Improved

question 60

Multiple Choice

The need to implement philosophies and practices commonly referred to as "improved business practices" comes from

• A) increased competition resulting in public accounting firms being concerned about keeping clients and maintaining a reasonable profit.
• B) a CAS pronouncement.
• C) a GAAP pronouncement.
• D) a need to increase profitability on assurance type mandates.

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Definitions:

Tombstone

An advertisement in a financial publication announcing a public offering of securities, containing basic details of the issue.

Preliminary Prospectus

An initial document provided by a securities issuer that describes the details of an upcoming offer to the public, often called a "red herring."

Ex-Rights

Ex-rights refer to a situation where a stock is traded without the benefit of a rights offering, which was previously announced to its shareholders.

Holder-Of-Record Date

The specific date set by a corporation on which the shareholders of record are entitled to receive a declared dividend or participate in corporate actions.