To Make Sure That Managers Have Followed GAAP Rules in Producing

question 106

Multiple Choice

To make sure that managers have followed GAAP rules in producing financial statements,all public companies must:

• A)Hire independent auditors to scrutinize their financial records.
• B)Hire independent detectives to scrutinize the background of all their accountants.
• C)let the government regulators scrutinize their financial records.
• D)let their shareholders check their financial records.

---

Definitions:

Great Depression

A severe worldwide economic downturn that took place during the 1930s, characterized by vast unemployment, deflation, and a significant decline in economic activity across much of the world.

Consumer Protection Legislation

Laws and regulations designed to ensure the rights of consumers are upheld, protecting them against unfair, deceptive, or fraudulent practices by businesses.

Upton Sinclair

An American writer and reformer known for his novel "The Jungle," which exposed the harsh conditions and unsanitary practices in the U.S. meatpacking industry.

The Jungle

A novel by Upton Sinclair, published in 1906, highlighting the harsh conditions and exploited lives of immigrants in the United States in Chicago and similar industrialized cities.