The Reasoning Behind the Requirements of the Sarbanes-Oxley Act's Section

question 51

Multiple Choice

The reasoning behind the requirements of the Sarbanes-Oxley Act's section 404 (attestation on internal control over financial reporting) is that

• A)effective controls result in greater profits to organizations,reducing business failures.
• B)effective controls reduce the likelihood of future misstatements in the financial statements.
• C)better internal controls can be implemented at lower cost,improving product quality.
• D)automated controls improve customer service,resulting in higher product sales.

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Definitions:

Deductive

Pertains to a logical process in which a conclusion follows necessarily from the stated premises, implying the conclusion is a direct consequence of the premises.

Inductive

A reasoning method that makes broad generalizations from specific observations.

Public Performances

Events where performers present one or more acts of entertainment to an audience in a public space.

Expensive Tickets

Tickets for events, travel, or other activities that have a high cost, often due to high demand, special access, or additional perks included.