Which of the Following Is True Regarding Activities of the Public

question 14

Multiple Choice

Which of the following is true regarding activities of the Public Company Accounting Oversight Board?

• A) The Board ensures that auditors and public accounting firms compile accurate and truthful financial reports for the companies they audit, but it has no responsibility in regard to whistle-blowing protection.
• B) The Board requires that companies devise a system that allows employees to report suspicions of unethical behavior, but it does not address financial reports prepared by auditors and public accounting firms.
• C) The Board requires that the universalization test be used as the primary ethical guideline and also mandates protection for whistle-blowers who report suspicious activity involving financial reports.
• D) The Board ensure that auditors and public accounting firms compile accurate and truthful financial reports for the companies they audit and also requires that companies devise a system that allows employees to report suspicions of unethical behavior.
• E) The Public Company Accounting Oversight Board was abolished during the Obama administration and no longer exists.

Explain the consequences of incorrectly recording inventory on financial statements.

Identify the effects of different inventory costing methods on financial statements.

Understand how to accurately apply medical codes to various diagnoses.

Comprehend the classification and coding for infectious diseases.

---

Definitions:

Interperiod Tax Allocation

The accounting technique of distributing tax expenses between different periods to match tax expenses with the revenues they are related to.

Interperiod Tax Allocation

The method of accounting that recognizes the tax effect of differences between the timing of income recognition for financial reporting and tax purposes.

Investment Income

The money earned from various types of investments, including stocks, bonds, mutual funds, and real estate.