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Component 2, as described in Scenario B, is an example of
Audit Standard
Guidelines or rules that auditors follow to ensure financial statements are fairly and accurately presented and in compliance with the accounting standards.
Public Company Accounting Oversight Board (PCAOB)
A nonprofit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors.
Investment Company Act of 1940
A law that regulates investment companies and the activities they engage in, including mutual funds, to protect the interests of investors.
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