| |
19. A “Statement of Management Responsibility” is:
| a. |
A statement in the annual report, signed by the CEO and CFO, that
management is responsible for the financial statements
|
| b. |
Not required by the SEC
|
| c. |
Generally found in large company annual reports, not small company reports
|
| d. |
Strongly recommended for all companies by Financial Executives International
|
| e. |
All of the above
|
20. The audit committee of a public company should be composed of:
| a. |
The CFO, CEO and at least three outside directors
|
| b. |
At least three independent directors, all financially literate, and at least
on financial expert
|
| c. |
The CFO, The CEO and Chairman of the Board
|
| d. |
None of the above is correct |
21. Who should establish the agenda for an audit committee meeting?
| a. |
CFO
|
| b. |
Outside auditor
|
| c. |
Audit committee chairperson
|
| d. |
Chairman of the Board
|
22. Which of the following is NOT an example of an intangible asset?
| a. |
Patent on unused technology/business know-how
|
| b. |
A product formula
|
| c. |
Recent improvements to a major facility
|
| d. |
Goodwill
|
23. The audit committee of a public company is required to:
| a. |
Give a report that, in its opinion, the financial statements are in
compliance with GAAP
|
| b. |
Meet at least four times a year
|
| c. |
Oversee all company litigation
|
| d. |
Disclose whether it considered the impact of consulting work on the
auditor’s independence
|
|
