Which of the Following Requires Managements of Pubic Companies to Assess

question 17

Multiple Choice

Which of the following requires managements of pubic companies to assess the adequacy of internal controls over financial reporting and further requires their auditors to audit management's assessment of internal controls over financial reporting and the actual effectiveness of the system of internal controls?

• A) Foreign Corrupt Practices Act
• B) Securities Exchange Act of 1934
• C) SAS 55, Consideration of the Internal Control Structure in a Financial Statement Audit
• D) Section 404 of Sarbanes-Oxley
• E) PCAOB Standard No. 9

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Definitions:

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior.

Voluntary Responses

Actions that are performed deliberately and with awareness, typically as a result of conscious decision making.

Psychodynamic Perspective

A view in psychology which emphasizes the role of unconscious processes and past experiences in shaping behaviors and personalities.

Empirically Untestable

A concept or hypothesis that cannot be verified or disproven through observation or experiment.