58. When analyzing insider trading, the person giving the tip is the __________, the person receiving the tip is the __________, officers and directors are __________, and persons working with the issuer are __________.
a. tipper, remote tippee, temporary insider, permanent insider.b. tipper, remote tippee, traditional insider, temporary insider.c. tippee, tipper, temporary insider, traditional insider.d. tipper, tippee, traditional insider, temporary insider.ANSWER: dPOINTS: 1DIFFICULTY: ChallengingNATIONAL STANDARDS: United States - BUSPROG: - ANALYTICACCREDITING STANDARDS: DISC: - AICPA: BB-LegalTOPICS: 22-18 Definition of TermsKEYWORDS: Blooms: Application
59. Section 16(a) of the 1934 Act requires that officers, directors, and greater-than-10 percent shareholders of companies that have registered any class of equity securities under the 1934 Act file __________ reports with the SEC and with an national securities exchange on which their company's equity securities are listed.
bPOINTS: 1DIFFICULTY: ChallengingNATIONAL STANDARDS: United States - BUSBROG: - AnalyticACCREDITING STANDARDS: DISC: - AICPA: BB-LegalTOPICS: 22-24a Short-Swing TradingKEYWORDS: Blooms: Application60. Sampson, an accountant and auditor with ABC Accounting, was auditing XYZ Company. Delilah, the president of XYZ Company, told Sampson that she really needed to keep her job and that if the true condition of the company were exposed, she would certainly be fired. She tells Sampson that she is sure she can turn things around if he will only look help her out in the audit report. Sampson, who was infatuated with Delilah, agreed to include inaccurate numbers in the company's audit report knowing that the opinion would be included in the company's annual report on Form10-K filed with the SEC. Unfortunately, Delilah was not able to turn the company's performance around, and it went into bankruptcy later that year. Sampson becomes aware that an investigation is being conducted. Which of the following is true regarding his potential liability?