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:

Anal Stage

A phase in Freudian psychosexual development when a child's focus is on controlling bladder and bowel movements, typically occurring between 18 months and three years old.

Generativity

A concept in developmental psychology referring to the concern for establishing and guiding the next generation.

Autonomy

The capacity to make an informed, uncoerced decision; in psychology, it refers to the sense of self-directedness and independence.

Basic Trust

A concept introduced by Erik Erikson referring to an essential trustfulness of others as well as a fundamental sense of one's own trustworthiness, developed in infancy.