To Help Eliminate Conflicts of Interest, Sarbanes-Oxley Prohibits All the Following

question 8

Multiple Choice

To help eliminate conflicts of interest, Sarbanes-Oxley prohibits all the following activities by audit firms for their clients, except: ______.

• A) the design and implementation of financial information systems.
• B) actuarial services.
• C) management functions and human resources.
• D) having multiple clients whose interests may be adverse to each other.

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Definitions:

Principal

The original amount of money on which interest is calculated.

Composition

The act of combining two functions by applying one function to the result of another.

Function

A mathematical relation in which each element of a set of inputs is associated with exactly one element of a set of outputs.

Inverse Function

A function that reverses the operation of a given function, so that if the original function applied to an input gives a certain output, the inverse function applied to that output returns the original input.