The Dodd-Frank Act Requires Auditors to Report on Broker-Dealer Compliance

question 39

Multiple Choice

The Dodd-Frank Act requires auditors to report on broker-dealer compliance with internal control:

• A)Over financial reporting as of year-end.
• B)Operational effectiveness as of year-end.
• C)Over compliance with various SEC requirements during the most recent fiscal year.
• D)In conjunction with the Foreign Corrupt Practices Act.

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Definitions:

Controllable Margin

The amount of profit or contribution margin that a manager can directly influence by controlling costs and generating revenues.

Contribution Margin

The amount by which a product's selling price exceeds its total variable costs, indicating how much contributes to covering fixed costs and generating profit.

Dollar Amount

A specific value of money in terms of the currency of the United States, expressed in dollars.

Investment Center

A division or unit within a company that is responsible for its own revenues, expenses, and assets, and its performance is evaluated on its return on investment.