TRUE/FALSE QUESTIONS 1. Answer the following questions with T for true or F for false for more practice with key terms and concepts from this chapter. 1. In civil fraud, the burden of proof is higher than in criminal fraud. T F 2. By 2001, very little of top management compensation was in the form of stock options. T F 3. To deal with the turmoil caused by the various accounting scandals, the SOX Act was passed in 1999. T F 4. The PCAOB ended the self-regulation of the external auditing profession. T F 5. The financial frauds at the turn of the millennium were limited to just a couple of varieties of sham reporting. T F 6. The National Crisis Inquiry Report (2011) concluded that the financial crisis was unavoidable. T F 7. According to the Financial Crisis Inquiry Report, the lack of transparency in the balance sheets of major financial institutions was one of the causes of the financial crisis of 2008. T F 8. The Glass-Stegall Act revised and increased the power of the SEC. T F 9. When companies settle a charge of civil fraud, they usually accept the SEC's findings. T F 10. Most countries in Europe do not have stringent laws to protect whistleblowers. T F