James Doty, the Chairman of the PCAOB, in His Testimony

Multiple Choice

James Doty, the chairman of the PCAOB, in his testimony before Congress on the financial crisis of 2007-2008, admitted that auditors should have been more vigilant-not just at Lehman Brothers, but across the board. Which audit areas did Doty signal out for criticism?

A) Inventories and cash flow
B) Capital and operating expenses
C) Special purpose and related-party entities
D) Valuations and end-of-period transactions