The PCAOB Places Responsibility for the Reliability of Internal Controls

question 9

Multiple Choice

The PCAOB places responsibility for the reliability of internal controls over the financial reporting process to:

• A) the company's board of directors.
• B) the audit committee of the board of directors.
• C) the CEO and the CFO.
• D) the CFO and the Independent Auditors.

---

Definitions:

Clearing Time

The time it takes for a payment or transaction to be processed and the funds to be cleared and settled.

Default Risk

The possibility that a borrower will be unable to make the required payments on their debt obligations.

Marketable Securities Portfolio

A collection of liquid financial instruments and securities that can be quickly converted into cash at a value close to the market rates.