Under Section 404 of the Sarbanes-Oxley Act, Auditors Are Required

question 16

Multiple Choice

Under section 404 of the Sarbanes-Oxley Act, auditors are required to:

• A) Attest to and report on the effectiveness of the client's internal controls.
• B) Establish and maintain internal controls for audited companies.
• C) Advise management on its preparation of the Report on Internal Controls.
• D) Evaluate the company's internal control system periodically throughout the year.
• E) All of the answers are correct.

---

Definitions:

Acupuncture

Use of pins to diminish pain, possible because of stimulation of release of endorphins and cortisol.

Kinesthesis

The sensory system's ability to detect body position and movement, enabling coordination and balance.

Vestibular Sense

The sensory system responsible for balance and spatial orientation, located in the inner ear.

Clairvoyance

The supposed ability to gain information about an object, person, location, or physical event through means other than the known human senses.