Which of the Following Statements Regarding Auditors Is FALSE

question 38

Multiple Choice

Which of the following statements regarding auditors is FALSE?

• A)The Sarbanes-Oxley Act called on the SEC to force companies to have audit committees that are dominated by outside directors and required that at least one outside director have a financial background.
• B)Whether information is material has been defined in the courts as referring to whether the information would have been a significant factor in an investor's decision about the value of the security.
• C)CEOs and CFOs must return bonuses or profits from the sale of stock or the exercise of options during any period covered by statements that are later restated.
• D)The law is especially strict with regard to takeover announcements,prohibiting any insider with nonpublic information about a pending or ongoing tender offer from trading on that information or revealing it to someone who is likely to trade on it.

---

Definitions:

Unconscious Defense Mechanisms

Psychological strategies employed by the unconscious mind to protect an individual from anxiety and unacceptable thoughts and feelings.

Dependence

A situation where an individual relies on a substance, activity, or another person for normal functioning or well-being, often leading to a compulsive or needy behavior pattern.

Psychodynamic Therapy

A therapeutic approach designed to explore the psychological forces underlying an individual's thoughts, feelings, and behaviors.

Unipolar Depression

A major depressive disorder characterized by a persistent low mood and a lack of interest in activities, without the mood swings seen in bipolar disorder.