All of the Following Are Principal Provisions of the Sarbanes-Oxley

question 19

Multiple Choice

All of the following are principal provisions of the Sarbanes-Oxley Act of 2002 except:

• A) At least one member of the audit committee of the board of directors must be a "financial expert."
• B) The lead audit or coordinating partner and the reviewing partner of the public accounting firm must rotate, or change, every five years.
• C) The firm's chief executive officer and the chief financial officer must issue a statement along with the audit report stating that the financial statements and notes fairly present the operations and financial position of the firm.
• D) The FASB has oversight and enforcement authority over the SEC.

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Definitions:

Assets

Resources owned or controlled by a business, expected to produce economic value or future benefits for the company.

Owner's Equity

The amount of ownership interest that the owner of a sole proprietorship or partners in a partnership have in their business, similar to stockholders' equity in a corporation.

Journal Format

A structured way of recording financial transactions in chronological order, typically used in bookkeeping and accounting.

Reference Column

A column in accounting journals where cross-references to ledger account numbers or other relevant documentation are noted.