56.This governing group is the federal regulatory agency responsible for protecting the interests of investors by making sure that public companies provide complete and transparent financial information:
57.This governing group created the framework for internal controls evaluations:
58.It is necessary that certain stakeholders remain independent related to the corporation’s financial reporting. Which of the following correctly states the stakeholders that should remain independent?
A.Internal Auditors, Audit Committee and External Auditors
B.Audit Committee and Internal Auditors
C.External Auditors and Audit Committee
D.Both Internal and External Auditors
59.The system of checks and balances in corporate governance includes several interrelated functions. Which of the following is not one of those functions?
60.The concept that encompasses the policies and procedures in place to lead the directorship of the company is called:
D.Internal Controls and Compliance
61.Which of the following is not typical relationship in an organization chart?
A.Supervisors report to managers
B.Managers report to officers
C.Managers report to supervisors
D.Officers report to the board of directors
62.According to the authors, the downfall of Enron involved poor management oversight, and included the following criticism(s) of the board of directors:
A.Board meetings were few and brief
B.They did not challenge the company’s aggressive accounting policies
C.Board allowed senior executives to be exempted from the company’s policies regarding conflicts of interest
D.All of the above
63.The correctness of the financial information presented is called:
64.This characteristic of financial information, relates to how clearly the information can be understood. It requires a straightforward, consistent, and timely approach.
65.Companies that emphasize accuracy and transparency:
A.Will have internal controls in place to make sure that their financial reports do not contradict each other.
B.Will have fewer opportunities for errors or fraud.
C.Will be more likely to prevent opportunities for wrongdoers to cross the line into fraud.
D.All of the above.