26. Which of the following is an important financial reporting consequence of Dodd-Frank? a. Smaller public companies will be exempt from Section 404(b) of the SOX Act of 2002. b. Auditors of nonpublic broker-dealers will be subject to oversight by the PCAOB. c. Changes to asset-backed securitization practices. d. All of the above. 27. Judy, an internal auditor at Fermented Fruits, has found evidence of accounting fraud at the company. She is worried about the repercussions of reporting her firm to the SEC. You remind her that under Dodd-Frank, a whistleblower: a. Is eligible to receive money from a $453 billion SEC fund. b. Is not eligible to receive a monetary award. c. Will likely be ignored by the SEC. d. Will likely be vilified by the SEC. 28. Which of the following might undermine the independence of a member of the board of directors at Fermented Fruits? a. One of the outside directors works for another dried fruit company, Raining Raisins. b. One of the outside directors is a high school teacher. c. One of the outside directors is a former CEO of a law firm. d. One of the outside directors is an actor. 29. Ethical Auditors is the external auditor for Fermented Fruits. Which of the following might undermine the ability of Ethical Auditors to impartially audit Fermented Fruits? a. Some auditors don't like dried fruit. b. Judy does not like the personality of the CEO of Fermented Fruits. c. Fermented Fruits has added nuts to its inventory. d. Ethical Auditors has been auditing Fermented Fruit since it went public ten years ago, and Judy has always been the managing partner on the job. 30. The SOX Act of 2002 introduced reforms in which of the following areas? a. Internal control reporting requirements. b. The registration of hedge funds with the SEC. c. Changes in the practices of ratings agencies. d. All of the above