Which of the Following Statements Is Characteristic of the Sarbanes-Oxley

question 40

Multiple Choice

Which of the following statements is characteristic of the Sarbanes-Oxley Act?

• A) The clients of a public accounting firm may appoint an employee of the accounting firm as its chief accounting officer six months after the audit.
• B) A person who receives compensation for any duties from a public corporation cannot be appointed as a member of its audit committee.
• C) It assigns an audit partner for each audit by a certified public accounting firm.
• D) It subjects all public accounting firms to annual review and inspection by the PCAOB.

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Definitions:

Close Substitutes

Products or services that can serve almost the same function as another in the eyes of consumers.

Price Increase

The rise in the cost of goods or services over time, which can be caused by factors such as inflation, increased production costs, or high demand.

Inelastic Demand

A market situation where the demand for a product does not significantly change with a change in price.

Total Expenditures

The combined amount of money spent by an individual, organization, or government over a specific period of time.