Under the Sarbanes-Oxley Act of 2002, How Long Are Accountants

question 27

Multiple Choice

Under the Sarbanes-Oxley Act of 2002, how long are accountants required to keep working papers?

• A) 3 years.
• B) 5 years.
• C) 10 years.
• D) for as many years as the firm is in existence.
• E) there is no specified time under Sarbanes-Oxley that working papers must be kept.

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Definitions:

Corporate Income Taxes

Taxes imposed on the net income (profits) of corporations, calculated based on tax rates that vary by jurisdiction.

Government Borrowing

The act of the state borrowing money, often by issuing securities like bonds, to fund its expenditures beyond its income.

Automatic Stabilizers

Financial strategies and initiatives, including taxation and unemployment insurance, that inherently adapt to mitigate economic variations without the need for further action by the government.

Aggregate Output

The total value of all goods and services produced in an economy within a given period of time.