Regulation Fair Disclosure requires that when public companies release material information about the company, they must do so to the public in general
a. True
b. False
Indicate whether the statement is true or false
True
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What is the best way an auditor can detect fraud in the financial statements?
a. Use professional skepticism. b. Understand Generally Accepted Accounting Standards. c. Brainstorm with the client to find the types of fraud occurring. d. Actively search for errors in the financial statements.
Product formulas, customer lists, and compilations of data are not protectable unless the owner has a patent, copyright, or trademark
Indicate whether the statement is true or false
What would limit the effectiveness of performance based pay?
a) Link it to the strategy of the organization b) Ensure its consistency c) Failure to tailor rewards to the situation d) Use it to motivate employees
Previously in stock-drop cases, courts used a presumption of prudence standard, presuminginvestment of company stock in company pension plans to have been prudent and therefore valid, despite problems with the stock. But a recent Supreme Court case ruled that the managers of company stock funds enjoy no special presumption of prudence. Discuss the potential impact of this ruling