What action did the U.S. Congress take because of the audit failures at Enron, WorldCom and other companies?

A. Required companies to begin preparing an additional financial statement
B. Passed the Sarbanes-Oxley Act
C. Required publicly-traded companies to be audited by a government agency
D. Passed an amendment to the Securities and Exchange Act


Answer: B

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Costs of monitoring and compensating for mistakes not eliminated through prevention activities are referred to as ______________________________

Fill in the blank(s) with correct word

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Criteria used to rate alternatives include all of the following EXCEPT:

a. acceptability b. cost-effectiveness c. ease of implementation d. conflict avoidance

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According to Table M7-3, which is the final simplex tableau for a problem with two variables and two constraints, what are the values for all the variables in this solution?

A) X1 = 20, X2 = 40, S1 = 0, S2 = 0 B) X1 = 0, X2 = 40, S1 = 0, S2 = 40 C) X1 = 0, X2 = 20, S1 = 0, S2 = 40 D) X1 = 0, X2 = 0, S1 = 0, S2 = 0 E) None of the above

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An absolute defense against payment exists if the insurer can show that the insured lacked an insurable interest

Indicate whether the statement is true or false

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