The Sarbanes-Oxley Act Requires Public Companies to Ensure Which of the Following

question 86

Multiple Choice

The Sarbanes-Oxley Act requires public companies to ensure which of the following individuals have considerable experience applying generally accepted accounting principles (GAAP) for financial statements?

• A) external auditors
• B) internal auditors
• C) chief financial officers
• D) corporate boards' audit committees

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Definitions:

Cash Dividend

A financial disbursement by a corporation to its stockholders, typically from earnings distribution.

Sales Adjusted

A metric reflecting changes or modifications to sales figures for purposes such as accounting adjustments or performance analysis.

Cost of Goods Sold

The direct costs tied to the production of the goods sold by a company, including direct labor, materials, and manufacturing overhead.

Direct Method

A cash flow statement preparation approach that lists major classes of gross cash receipts and payments.