Which Statement Is False Regarding the Public Company Accounting Oversight

question 48

Multiple Choice

Which statement is false regarding the Public Company Accounting Oversight Board (PCAOB) ?

• A) regulates audit standards and independent audit firms.
• B) has five members appointed by the SEC.
• C) allows all members to be accountants, past or present.
• D) is under the oversight and enforcement of the SEC.
• E) is funded by fees levied on all publicly traded companies.

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Definitions:

Negotiations

The process in which two or more parties with differing needs and goals discuss an issue to find a mutually acceptable agreement.

Alternative Dispute Resolution

A range of processes and techniques outside of the judicial system that are used to resolve conflicts or disputes between parties, including mediation and arbitration.

Mediation

A conflict resolution method involving a neutral third-party mediator who helps disputing parties reach a voluntary, mutually acceptable agreement.

Arbitration

A dispute resolution process in which a neutral third party makes a binding decision to resolve a conflict between parties.