Which of the following is false regarding shareholder voting?

Multiple Choice

• Most large publicly held corporations are incorporated in states requiring businesses incorporated in them to permit shareholders to cumulate their votes for directors.

• The purpose of cumulative voting is to give minority shareholders an opportunity to be represented on the board.

• Most corporations elect directors on the basis that each share is entitled to one vote for each director.

• Dividing directors into three classes, one class to be elected each year, makes it more difficult for minority shareholders to attain representation on the board.

Which of the following is false regarding an accountants working papers prepared in making an audit?

Multiple Choice

• The accountant may need working papers to justify his or her work before the IRS.

• Working papers may include comments about a clients internal controls and accounting policies, not just plans for the audit.

• The accountant must get the clients permission before working papers may be transferred to another accountant.

• Working papers belong to the client, not the accountant.