What do you know?

Quick Quiz

1. Only one of the following financial disclosure filings must be audited. Which one is it?

A. Periodic earnings statement.
B. Annual financial statement.
C. Proxy statement.

2. When the auditor gives an “unqualified” opinion to a company’s financial statements, it means:

A. The auditor does not endorse the statements.
B. The auditor has reasonable assurance that the reports are an accurate reflection of the financial state of the company.
C. The auditor declines to make a judgment.

3. Insider trading is illegal if:

A. The number of shares exceeds 10 percent of an investor’s holdings.
B. The investor has confidential, material (significant), non-public information obtained from inside sources about the company and trades on that information.
C. The buyer or seller is related to a company insider.