A Material Weakness Because the Oversight of the External Financial

question 11

Multiple Choice

A material weakness because the oversight of the external financial reporting function by the audit committee is ineffective will ordinarily result in communication to: $$\begin{array} { | l | l | c | } \hline & \text { PCAOB } & \begin{array} { c } \text { The } \\\text { Stock } \\\text { Erchange } \\\text { That the } \\\text { Company } \\\text { is Listed } \\\text { On }\end{array} \\\hline \text { A. } & \text { Yes } & \text { Yes } \\\hline \text { B. } & \text { Yes } & \text { No } \\\hline \text { C. } & \text { No } & \text { Yes } \\\hline \text { D. } & \text { No } & \text { No } \\\hline\end{array}$$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

FMV

Fair Market Value, the price that property would sell for on the open market.

Basis

The amount of investment in property for tax purposes; used to determine the gain or loss on the sale, exchange, or disposal of the property.

Taxable Gain

The profit arising from the sale or exchange of an asset that is subject to income tax.

Charitable Contribution

Donations made to qualified organizations that may be tax-deductible for the donor.