The Sarbanes-Oxley Act Requires Management to Certify That It Has

question 31

Multiple Choice

The Sarbanes-Oxley Act requires management to certify that it has informed the auditor and audit committee of any

• A)related party transactions.
• B)significant deficiencies in business practices.
• C)significant deficiencies in internal controls.
• D)specific business or industry risk.

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Definitions:

Biases

Systematic patterns of deviation from norm or rationality in judgment, where particular feelings or opinions influence decision-making.

Uncertainty

Describes a situation where the outcomes or consequences of actions are unknown and unpredictable.

Probability

Likelihood that a given outcome will occur.

Rules of Thumb

Simple, general principles or guidelines that are typically derived from practice rather than theory.