All of the Following Requirements About Internal Controls Were Enacted

question 132

Multiple Choice

All of the following requirements about internal controls were enacted under the Sarbanes Oxley Act except

• A) independent outside auditors must attest to the level of internal control.
• B) companies must develop sound internal controls over financial reporting.
• C) companies must continually assess the functionality of internal controls.
• D) independent outside auditors must eliminate redundant internal controls.

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Definitions:

Expected Loss

An estimate of the amount of money or value that may be lost in an investment or venture, considering the probability of various outcomes.

Flood Plain

A flat area of land near a river or stream that is subject to flooding during periods of high discharge.

Probability

The quantification of the probability that an event will take place.

Six-Sided Die

A cube-shaped object with each of its six faces marked with a different number of dots from one to six, typically used in games of chance.