The Sarbanes-Oxley Act (SOX)forced Companies to Validate Their Internal Financial

question 70

Multiple Choice

The Sarbanes-Oxley Act (SOX) forced companies to validate their internal financial control processes by:

• A)putting strict limits on the amount of non-audit fees (consulting or otherwise)that an accounting firm can earn from a firm that it audits.
• B)requiring the CEO and CFO to return bonuses or profits from the sale of stock that are later shown to be due to misstated financial reports.
• C)requiring auditing firms to have long-standing relationships with their clients and receive lucrative auditing and consulting fees from them.
• D)requiring senior management and the boards of public companies to validate and certify the process through which funds are allocated and controlled.

---

Definitions:

Customer Service

The assistance and advice provided by a company to those people who buy or use its products or services.

Deductively

describes a logical process starting with a general idea or theory and moving towards a specific conclusion based on evidence or reasoning.

Bulleted List

A visual formatting tool used in written communication to organize items, points, or ideas clearly and concisely, marked by bullet points for emphasis and readability.

Complimentary Close

The polite concluding phrase in a letter or email, such as "Sincerely" or "Best regards," that precedes the sender's signature.