Which of the Following Is a Limitation of SEC Requirements

question 34

Multiple Choice

Which of the following is a limitation of SEC requirements for audit committee membership?

• A) The expanded responsibilities make service on the committee less desirable to competent directors.
• B) External auditors are unwilling to report to an independent audit committee.
• C) The audit committee compromises the external auditor's independence.
• D) Only the United Kingdom and the United States require audit committees, putting corporations in these countries at a disadvantage.

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Definitions:

Crowded Roadways

Refers to roads or highways that are filled with vehicles, often leading to slow movement and increased travel time.

Cap-and-Trade

Cap-and-trade is an environmental policy tool that sets a limit (cap) on emissions and allows companies to buy and sell (trade) permits for those emissions, encouraging reductions where they are most cost-effective.

Pollution Control

The process of reducing or eliminating the release of pollutants into the environment, typically involving regulations and technologies designed to minimize environmental damage.

Optimal Pollution Control

The regulation of pollution to maximize social welfare by balancing the costs of pollution control against the benefits of reducing pollution.