Bill Is a Public Accountant Auditing Expo Corporation

question 56

Multiple Choice

Bill is a public accountant auditing Expo Corporation.Based on information in Expo's confidential records,Bill recommends the purchase of Expo stock to his brother.

• A) Bill is involved in insider trading prohibited by the SEC.
• B) Bill's brother has no direct connection to Expo Corporation and therefore his purchase of the stock is not prohibited by insider trading laws.
• C) Bill is not an insider because he is not an officer or employee of Expo Corporation
• D) If Bill told a non-relative who purchases Expo stock, no insider trading laws would be violated.

---

Definitions:

Investment Assets

Assets purchased with the goal of generating income or appreciating in value, including stocks, bonds, and real estate.

Portability Problem

Challenges that arise when a product or solution cannot easily be transferred from one environment or system to another.

Pension Benefits

The regular payments made to a retired or disabled employee, often based on salary and years of service.

Defined Benefit Plans

Pension plans in which retirement benefits are set according to a fixed formula.