38. Which one of the following requires the registration of mutual funds that engage in investing and trading in securities?

A) The Securities Act of 1933.

B) The Securities Exchange Act of 1934.

C) The Investment Company Act of 1940.

D) The Foreign Corrupt Practices Act of 1977.

E) The Sarbanes-Oxley Act of 2002.

39. Which statement is false regarding the Public Company Accounting Oversight Board (PCAOB)?

A) Regulates audit standards and independent audit firms.

B) Has five members appointed by the SEC.

C) Allows all members to be accountants, past or present.

D) Is under the oversight and enforcement of the SEC.

E) Is funded by fees levied on all publicly traded companies.

40. Which one of the following forms is used when companies have filed with the SEC for less than 36 months but are not large enough to file form S-3?

A) S-8.

B) S-6.

C) S-4.

D) S-1.

E) S-11.

41. Which one of the following forms is used in connection with employee stock plans?

A) S-8.

B) S-3.

C) S-4.

D) S-1.

E) S-11.

43. Which of the following forms is used in connection with registration of securities of a small reporting company with $25 million of annual revenues and of $25 million of voting securities held by non-affiliates?

A) S-8.

B) S-3.

C) S-4.

D) S-1

E) S-11.

44. The SECs role in the initial registration of securities to be publicly issued is:

A) To ensure that the content of the registration filing is in compliance with securities regulations.

B) To ensure that securities issued are quality investments.

C) To provide data to the public regarding first-time issuance of securities.

D) To give permission to an independent CPA firm to audit the registrants financial statements.

E) To make the registrants annual report available for public viewing.

45. Audited financial statements in an annual report of an issuer that is subject to SEC regulation must include:

A) Three balance sheets, three income statements, and three statements of cash flows.

B) Three balance sheets, two income statements, and two statements of cash flows.

C) One balance sheet, one income statement, and one statement of cash flows.

D) Two balance sheets, three income statements, and three statements of cash flows.

E) Two balance sheets, two income statements, and two statements of cash flows.

46. The audit committee of an entity subject to SEC regulation will do all of the following except:

A) Be responsible for agreeing to fee compensation of the independent audit firm.

B) Certify the annual financial statements.

C) Be comprised only of individuals who are not members of management.

D) Approve non-audit services provided by the independent audit firm.

E) Serve as liaison between the board of directors and the independent audit firm.