Which Statement Is False Regarding the Registration of Public Accounting

question 70

Multiple Choice

Which statement is false regarding the registration of public accounting firms with the PCAOB under the Sarbanes-Oxley Act?

• A) Registration is required of all U.S. firms that prepare, issue, or participate in the preparation of an audit report for an entity that issues securities.
• B) Foreign accounting firms are exempt from registration.
• C) Disclosure requirements include annual fees received from each issuer for the firm's audit and non-audit services.
• D) The Public Company Accounting Oversight Board subjects registered firms to periodic inspections.
• E) Information regarding disagreements between the issuer and the audit firm during the previous year must be disclosed.

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Definitions:

Genotype

The genetic makeup of an organism that determines its specific traits, often in contrast to its observable characteristics (phenotype).

Esterase Production

Refers to the biological synthesis of esterases, enzymes that split esters into an acid and an alcohol in a chemical reaction with water.

Beneficial Allele

An allele that contributes to an increased fitness of an organism, enhancing survival and reproduction in a specific environment.

Fixation

The process by which a genotype or allele reaches a frequency of 100% in a population, eliminating all other variations.