Which of the Following Best Describes Why the Sarbanes-Oxley Act

question 48

Short Answer

Which of the following best describes why the Sarbanes-Oxley Act of 2002 (SOX) made documentation of business processes essential for businesses?
E. SOX mandates that accountants create the business rules and documenation associated with a company's business processes
F. SOX requires managers to assess and attest to the company's internal controls structures and procedures
G. SOX explicitly states that business processes must be documented
H. SOX allows thorough documentation of business processes to act as a substitute for a full review of internal control structures and procedures

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Definitions:

Automatic Insertion Machine

Machinery used in manufacturing processes to automatically place components onto printed circuit boards or into other assembly units.

Average Rate of Return

A financial ratio used to evaluate the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost, typically expressed as a percentage.

Straight-Line Depreciation

A strategy for apportioning the cost of a concrete asset into equal yearly sums throughout its serviceable life.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.