Which of the following is true?
A. Attaining a passing score on the part of the Uniform CPA Examination that covers professional ethics is evidence of integrity and commitment to ethical conduct.
B. A professional accountant should resign his position rather than become involved in the distribution of financial statements indicating insolvency.
C. Federal securities laws regarding the issuance of misleading financial statements apply not only to the independent auditors, but to management of the company as well.
D. The existence of generally accepted accounting principles (GAAP) eliminates the need for professional judgment except in very unusual circumstances.

The federal securities legislation governs its sales or offering of stock, investment management, the companies of some industry professional persons, investment companies like mutual funds, tender documents, proxy statements, and, more particularly, publicly-traded company control. It's not just the external directors, but also the managers of the organization apply to these rules mostly on the release of erroneous financial reports.