Which of the Following Statements Regarding the Securities and Exchange

question 2

Multiple Choice

Which of the following statements regarding the Securities and Exchange Commission (SEC) is not true?

• A)The SEC has no jurisdiction over closely held companies.
• B)The SEC regulates both audit standards and financial reporting.
• C)The SEC is a private professional organization.
• D)The SEC's influence has increased following passage of the Sarbanes-Oxley Act.

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Definitions:

Competence

Refers to the ability of an individual or organization to effectively perform or carry out a specific task or role.

Ethical Decision-making

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles.

Moral Decision-making

The process of choosing the right or ethical course of action when faced with a moral dilemma.

Informed Consent

A process by which a person voluntarily confirms their willingness to participate in a particular procedure, having understood its risks, benefits, and other related information.