To Encourage Reports of Abusive Securities Law Violations,a Company Maintains

question 30

Multiple Choice

To encourage reports of abusive securities law violations,a company maintains an internal whistleblower hotline.The hotline allows callers to identify themselves or to remain anonymous.A caller,who identified himself by name and company job title,recently informed the company that the actuarial assumptions underlying its expected employee turnover was wrong.The caller then left a second,more detailed message in which the accrued impact of this mistake on the company's Estimated Future Liability for Workers' Compensation clams was estimated.The caller's estimates were correct,but the amount of the error was determined by the company to have arisen due to an innocent mistake and the amounts were immaterial to the company's financial statements.Accordingly,under the Sarbanes-Oxley Act,the company:

• A) May disclose the caller's name if the company does so out of a sincere desire to discourage wasteful calls about immaterial matters
• B) May disclose the caller's name, without restriction
• C) May not disclose the caller's identity under any circumstances
• D) May not disclose the caller's name, but may disclose in general terms his job title and the degree to which he had access to internal company records

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Definitions:

Blood Alcohol Level (BAL)

A measure of alcohol concentration in a person's bloodstream, used to determine intoxication levels.

Legal Limit

The maximum or minimum legal amount or boundary permitted for certain values or actions, often set by laws or regulations.

Cross-sectional Study

A type of observational study that analyzes data from a population, or a representative subset, at a specific point in time.

Cohort Effects

Differences observed in a study that are due to the characteristics of the group of participants, not the effect of the experiment itself.