16. Which one of the following items is not a requirement of audit committees by the Sarbanes- Oxely Act of 2002: a. A least three members of the audit committee must have a strong accounting background. b. Each audit committee must have the authority to engage independent counsel. c. Each issuer must provide appropriate funding for the audit committee. d. Each audit committee must establish procedures for complaints on accounting, internal controls, or audit matters. 45. Which would be considered a negative trend or indicator for a governmental unit? a. Real property taxes receivable divided by real property tax revenue is decreasing over time. b. Tax levy divided by tax limit is decreasing over time. c. Current liabilities divided by gross revenues is increasing over time. d. Unreserved fund balance percentages are increasing over time. 64. In computing income under the net worth method, the following facts are found: Total end-of-year assets.......... Total end-of-year liabilities.......... $1,600,000 ...$825,000 Nondeductible expenses (for tax purposes)...... $120,000 Net worth at beginning of year........ ..$560,000 Adjusted gross income might be: K a. $95,000. b. $215,000. c. $290,000. d. $335,000.