An Effective Board of Directors Helps Ensure That the Company

question 72

Multiple Choice

An effective board of directors helps ensure that the company takes only appropriate risks.The audit committee can

• A)reduce the likelihood of fraud and financial statement errors through oversight of the entity-level controls.
• B)reduce the likelihood of financial statement errors by helping management of the company with complex financial reporting issues.
• C)reduce the likelihood of financial statement errors by helping management in the preparation of the financial statements and related notes.
• D)reduce the likelihood of overly aggressive accounting through oversight of financial reporting.

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Definitions:

Klinefelter Syndrome

A genetic condition affecting males, characterized by an extra X chromosome, leading to symptoms like reduced muscle mass, reduced facial and body hair, and infertility.

XXY

A chromosomal condition in which a male has an extra Y chromosome, often associated with Klinefelter syndrome.

Turner Syndrome

A chromosomal disorder affecting females, characterized by the absence of part or all of a second sex chromosome, leading to various developmental issues.

Estradiol

A potent estrogen hormone involved in the regulation of the reproductive system and secondary sexual characteristics.