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.

Analyze different investment or savings options based on their present or future values.

Apply the concept of the time value of money to personal and business financial decisions.

Interpret how changes in interest rates affect the present value of future payments.

Understand and apply the rule of 70 in estimating how long it takes for an investment to double.

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Definitions:

Triglyceride

A type of fat (lipid) found in your blood, made up of three fatty acids and glycerol.

Wax

A lipid composed of long-chain fatty acids and alcohols that is hydrophobic and malleable at ambient temperatures.

Fatty Acid

Carboxylic acids with long hydrocarbon chains, which are components of lipids in the body and are used in various industrial applications.

Herring Oil

A type of oil obtained from the processing of herring fish, rich in omega-3 fatty acids.