Under Sarbanes-Oxley, Who Cannot Be a Member of an Audit

question 32

Multiple Choice

Under Sarbanes-Oxley, who cannot be a member of an audit committee of a publicly traded company?

• A) Officer
• B) Outside lawyer for the company
• C) Consultant to the company
• D) All of the above cannot be a member of the company's audit committee

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Definitions:

Accounting Period

The time span for which financial statements are prepared, typically a year, a quarter, or a month.

Actual Manufacturing Overhead

The real expenses incurred during the manufacturing process, excluding direct labor and raw material costs, such as utilities, depreciation, and maintenance.

Incurred

Refers to costs or expenses that have been realized or consumed in the course of business operations.

Product Costs

The direct and indirect costs incurred to produce a product, including materials, labor, and overhead.