The Public Company Accounting Oversight Board

question 97

Multiple Choice

The Public Company Accounting Oversight Board

• A) performs inspections of the quality controls of firms that audit public companies.
• B) establishes auditing standards that must be followed by CPAs on all audits.
• C) oversees auditors of private companies.
• D) performs all of the above functions.

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Definitions:

Stipulated Benchmark

A predefined standard against which the performance of an investment or fund is measured.

Portfolio Assets

All the individual investments held within a portfolio, including stocks, bonds, cash, and other securities.

Monthly Excess Returns

The return on an investment minus the return on a risk-free investment (such as Treasury bills), measured on a monthly basis.

S&P 500 Index

A stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.