5) Aloysius has a mortgage on his trailer with Octopus National Bank. The mortga

Question

5) Aloysius has a mortgage on his trailer with Octopus National Bank. The mortgage is $250,000. His brothers, Elmo, Homer and Jethro have agreed to be co-sureties. Each sibling is contractually obligated to pay off any outstanding balance in the following percentages: Elmo (25), Homer (35%), and Jethro (40%). After making few sporadic payments, Aloysius died, leaving an outstanding balance of $230,000 to be Elmo paid the entire balance himself as the other siblings were nowhere found. Elmo can recover the following amounts from Homer and Jetbern respectively, under his right of contribution: a: $0 from either sibling. b: $80,500 from Homer and $92,000 from Jethro, based on their share of the debt. c: $76,667 each from Homer and Jethro, because all 3 parties were jointly and severally liable. d: The entire $230,000 from Jethro, because he has the deepest pockets. 6) Under Sarbanes-Oxley, the standard that imposes liability on the CEO and CFO for deliberately participating in the creation of false documents filed with the SEC is: a: Willingly b: Knowingly c: Negligently d: Strict Liability 7) A surety has which of the following rights? l) The right to compel the creditor to pursue the principal debtor first. 11) The right of contribution against the principal debtor a: I only b: II only c: Neither I nor II d: Both I and II 8) Rules created under the Sarbanes Oxley Act of 2002 restrict former members of an audit engagement from accepting employment as a chief executive, chief 6pansia or chief accounting officer, or controller of a publicly traded audit client that files reports with the Securities and Exchange Commission. How much time must pass before the former auditor can accept a position with the client? a: More than six months after the engagement. b: Within six months of the engagement. c: More than two years after the engagement. d: None of the above.

Explanation / Answer

5 . The answer is C) Elmo can recover from Jethro and Homer equally as per right to contribute equally.

6. Standard is willing i.e. even after knowing the reports are wrong you willfully certify it.

7 . Both 1 and 2 .Option d.

7.

8. Cooling off period is 1 year.

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