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.

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Definitions:

Preference

An individual's inclination towards or tendency to like, choose, or favor something over another, based on factors such as taste, value, convenience, or familiarity.

Pictures of Infants

Visual representations, such as photographs or drawings, of young babies or newborns.

Ecological Systems Theory

A theory focusing on the organization and interactions of the multiple environmental contexts within which children develop.

Microsystem

The immediate environments in which an individual interacts directly, such as family, school, and peer group, part of Bronfenbrenner's ecological systems theory.