A Study Conducted of Financial Statement Restatements in 2007 and 2008

question 48

Multiple Choice

A study conducted of financial statement restatements in 2007 and 2008 indicated a decline in the number of restatements as a result of each of the following except for:

• A)Improved audits of financial statements
• B)Improved reliability of internal controls
• C)A more relaxed approach of the SEC regarding materiality and the need to file restatements
• D)All were cited as reasons for the decline

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Definitions:

Right to Privacy

The right to be free from intrusion or interference by others in one's personal affairs.

Supreme Court

The highest judicial court in a country or jurisdiction, which has the ultimate authority to adjudicate in appeals on the interpretation of laws.

Establishment Clause

A part of the First Amendment to the U.S. Constitution that prohibits the government from establishing an official religion or unduly favoring one religion over others.

Free Exercise Clause

A provision in the First Amendment to the U.S. Constitution that prohibits the government from interfering with an individual's right to practice their religion.