Which of the Following Statements Regarding Auditors Is False

question 23

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.

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Definitions:

Refusing Requests

involves declining someone's ask or demand politely and professionally, often with explanations or alternatives.

Fair And Reasonable Explanation

A justification or reasoning that is impartial, just, and in accordance with logic or common sense.

Indirect Claim Message

A communication method used in business or professional settings to address a complaint or claim in a non-confrontational manner, often beginning with neutral or positive statements.

Invoice

A document issued by a seller to a buyer, detailing a transaction and requesting payment for products or services provided.