The PCAOB Places Responsibility for the Reliability of Internal Controls

question 74

Multiple Choice

The PCAOB places responsibility for the reliability of internal controls over the financial reporting process on

• A) the company's board of directors.
• B) the audit committee of the board of directors.
• C) management.
• D) the CFO and the independent auditors.

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Definitions:

Magnetic Stripes

Patterns of alternating magnetic polarity found on the ocean floor parallel to mid-ocean ridges, providing evidence for the theory of plate tectonics and seafloor spreading.

Volcanic Rocks

Rocks formed from the cooling and solidification of magma or lava.

Oceanic Crust

The portion of the Earth's crust that forms the ocean basins, primarily composed of basalt and denser than continental crust.

Plate Boundary

The edges where two tectonic plates meet, which can be categorized into convergent, divergent, or transform boundaries based on their movement relative to each other.