The Sarbanes-Oxley Act Requires All of the Following,EXCEPT

question 32

Multiple Choice

The Sarbanes-Oxley Act requires all of the following,EXCEPT:

• A)that audit partners rotate every five years to limit the likelihood that auditing relationships become too cozy over long periods of time.
• B)strict limits on the amount of non-audit fees (consulting or otherwise)that an accounting firm can earn from the same firm that it audits.
• C)that senior management and the boards of public companies be comfortable enough with the process through which funds are allocated and controlled,and outcomes monitored throughout the firm,to be willing to attest to their effectiveness and validity.
• D)the auditor must personally attest to the accuracy of the financial statements presented to shareholders and sign a statement to that effect.

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Definitions:

Social Media

Digital platforms that enable users to create, share, or exchange information, ideas, and content among communities and networks.

Taft-Hartley Act

A 1947 U.S. federal law that restricts the activities and power of labor unions.

Landrum-Griffin Act

Federal legislation that primarily governs the internal operations of labor unions. It requires financial disclosures by unions, establishes penalties for financial abuses by union officials, and includes “Labor’s Bill of Rights” to protect employees from their own unions.

Gross Misconduct

Serious behavior on the part of an employee which can justify immediate dismissal without notice, typically because it causes significant harm to the business or its employees.