Which of the Following Is NOT One of the New

question 31

Multiple Choice

Which of the following is NOT one of the new requirements of the Sarbanes-Oxley Act (SOX) ?

• A) SOX requires an assessment by management of the internal control structure.
• B) SOX states that the board of directors is required to establish an audit committee to oversee financial matters of the company.
• C) SOX requires the external auditors to test the effectiveness of internal controls and issue a report which gives an opinion on the effectiveness of the internal controls.
• D) SOX requires that all employees adopt a code of ethics.

---

Definitions:

Self-Correcting Process

A method or mechanism that automatically adjusts and corrects its course of action to maintain or return to a desired state or condition.

Observing Nature

The act of paying close attention to the natural environment, often to understand natural processes or for relaxation and enjoyment.

Theory

An explanation using an integrated set of principles that organizes observations and predicts behaviors or events.

Integrated Set

A combined or unified group of elements or components that function as a whole.