Cpa in the Big World

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a, b and c are power of board of directors

but d is the power of stockholders

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 a, b and d are rights of shareholders

but c is the right of board of directors

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 a the declaration should be made by the board of directors not shareholders

 b and d are both rights of board of directors

c shareholders have the right of inspecting corporation records

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The most confused answer is b. The reason why b is incorrect is that stockholders have a right to receive dividends unless declared.

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The explanation is the same as question 6.

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In the bylaws, procedure for electing directors is included.

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The most confused answer is a. A fixed salary will encourage management to take little risk.

B will make management to take on excessive risk in order to maximum bonus of management.

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SEC rely on external auditors to monitor corporations.

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The chief internal audit executive should report to CEO

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Except for independence standards, performance standards, implementation standards and attribute standards are all included in ….

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Only the division of corporate finance reviews filings

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At least one financial expert is required but the issuer can disclose the reason why this role is not filled.

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Safeguarding assets is included in the operations objective.

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The answer has to be related to monitoring, however b, c and d are not related to monitoring but only to technology. So the answer is a.

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The answer a, b and d are techniques of identifying events. Only answer c is a step in risk assessment.