Your employer is a social media company whose CFO is engaging in an activity that would violate federal securities regulations. Which statement best describes when such activity would not be considered noncompliance with laws and regulations (NOCLAR)?

A.When the illegal activity has a material impact on the company's financial statements.

B.When compliance with securities regulations are fundamental to the company.

C.When the illegal activity does not relate to the company's business.

D.When compliance with securities regulations are important for avoiding material penalties.