Which of the Following Is a Requirement of the Sarbanes-Oxley

question 13

Multiple Choice

Which of the following is a requirement of the Sarbanes-Oxley Act?

• A)The outside auditor must issue an internal control report for each public company.
• B)The Public Company Oversight Board must conduct audits of public companies.
• C)Accounting firms may not both audit a public client and provide certain consulting services for the same client.
• D)The Public Company Oversight Board must create new accounting standards.

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Definitions:

Transactions Identified

The process of recognizing and documenting specific financial events in the appropriate accounting period.

Accounts Used

Refers to specific accounts in the general ledger that are impacted by transactions and financial events of a business.

Recording Revenue

The process of documenting the income a company generates from its business activities, typically recognized when goods or services are delivered.

Increase in Assets

An upward adjustment or growth in the value of resources controlled by a company that are expected to bring future economic benefits.