Which of the Following Is True Regarding Activities of the Public

question 43

Multiple Choice

Which of the following is true regarding activities of the Public Company Accounting Oversight Board?

• A)The Board requires that companies devise a system that allows employees to report suspicions of unethical behavior,but it does not address financial reports prepared by auditors and public accounting firms.
• B)The Board requires that the universalization test be used as the primary ethical guideline and also mandates protection for whistle-blowers who report suspicious activity involving financial reports.
• C)The Public Company Accounting Oversight Board was abolished during the Obama administration and no longer exists.
• D)The Board ensures that auditors and public accounting firms compile accurate and truthful financial reports for the companies they audit,but it has no responsibility in regard to whistle-blowing protection.
• E)The Board ensures that auditors and public accounting firms compile accurate and truthful financial reports for the companies they audit and also requires that companies devise a system that allows employees to report suspicions of unethical behavior.

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Definitions:

Legal Capacity

The ability of an individual or entity to enter into legally binding contracts and be sued or sue others.

Discharged

The completion, termination, or fulfillment of an obligation, debt, or contract.

Professional Licensing Statutes

Laws and regulations that establish the requirements and standards for obtaining and maintaining a license to practice certain professions.

Public's Health

The science and practice of protecting and improving the health of a community, as by preventive medicine, health education, control of communicable diseases, application of sanitary measures, and monitoring of environmental hazards.