These are three short essay questions. Answers can be found in the text and lectures.
Please use bullet points if appropriate so your responses are easy to read.
Do not just copy and paste from the text. I want to know whether you understand the material.
Question #1 (5 points):
Review each environmental law in Ch. 25.
You are the development manager for a developer of commercial distribution centers. You are surveying a new development site in Butler County near (but not on) Gregory Creek, which is considered a federal navigable waterway. You step into a swampy field and get your boots muddied. You also find ten rusted barrels of an unknown liquid substance in the corner of the site – two of which appear to have a leak. While accessing the contents of the barrels, you notice a small reptile that you’ve never seen before wading in a puddle. You are concerned with getting the site cleaned up and ready for development.
1. Based on these facts, what four specific federal environmental laws will you primarily need to investigate in order to develop the site? Note, do NOT worry about how the site is going to be used after it is developed and do NOT worry about NEPA.
2. For each statute, give your reason why. Point back to the relevant facts that would bring that statute into consideration.
Question #2 (5 points):
Review the section on Natural Resources in Ch. 25.
1. When must an environmental impact statement be prepared?
2. What are the specific items that it must discuss?
3. Why would these items enable the EPA and other agencies to determine whether the project should move forward? Should cost and time needed to get the permit be a factor? Give some thought to this question. Go beyond, “It’ll help the EPA to protect the environment.” What kind of information does the EIS give the EPA that is important to their decision making?
Question #3 (5 points):
Review the section on Sarbanes-Oxley (26-1a) and the whistle blower requirements in the Securities Exchange Act of 1934.
1. Under Sarbanes-Oxley, list the three events that an auditor would need to report to the audit committee of the client’s board of directors. Why is it important for these events to be reported? What is the reporting designed to prevent?
2. List the three actions involved if an auditor suspects a client has committed an illegal act. Why are these actions considered necessary? What are the actions designed to prevent?
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