61.Which of the following factors is least likely to encourage managers and auditors to act professionally?
a. professional reputation.
b. tax structure
c. legal liability
d. ethics
62.Ownership of an equity security entitles the holder to which basic right?
a. The right to management outstanding loans.
b. The right to pay dividends.
c. The right to vote for company directors at the annual shareholders' meeting.
d. The right to certify financial report reviews.
63.Which of the following is a public exchange for equity and debt securities?
a. The Federal Trade Commission.
b. The New York Stock Exchange.
c. The Securities and Exchange Commission.
d. The Financial Accounting Standards Board.
64.Which of the following groups make up a company’s audit committee?
a. Auditors.
b. Outside directors from the Board.
c. Company officers.
d. All of the individuals in (a), (b), and (c) are included in the audit committee.
65.Which of the following groups enacted the Sarbanes Oxley Act?
a. FASB
b. AICPA
c. U.S. Congress
d. PCAOB
66.All of the following are false regarding international accounting standards (IAS) except which of the following?
a. The SEC requires all companies to use IAS.
b. There are no substantive differences between U.S. GAAP and IFRS.
c. The SEC prohibits U.S. stock exchanges from listing non-U.S. companies who follow IFRS.
d. All public companies in the European Union are required to report using IFRS and IAS.