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:

Project

An organized collection of connected tasks designed to be completed within a specific timeframe and adhering to predetermined budget and constraints.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, demonstrating the scale of fixed versus variable costs.

Units Sold

The quantity of an item sold by a company in a specific period.

Hard Rationing

A situation where companies cannot obtain funds for investment, even if they are willing to pay higher interest rates, due to external factors.