SOX Increased the Time Requirement and Legal Risk for Company

question 7

Multiple Choice

SOX increased the time requirement and legal risk for company directors.These requirements will likely:

• A)Increase the number of directors in the board
• B)Reduce the number of directors in the audit committee
• C)Increase audit fees
• D)Reduce the number of boards that each director sits on
• E)All of the above

---

Definitions:

Current Liability

Financial obligations that are due within one year or within the normal operating cycle of a business.

Reconciled Cash Balance

The adjusted amount of cash on hand after accounting for discrepancies between the cash book and bank statement.

Bank Reconciliation

Bank reconciliation is the process of matching the balances in an entity’s accounting records for a cash account to the corresponding information on a bank statement, aiming to identify discrepancies and ensure the accuracy of financial records.

Reconciled Cash Balance

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement, to ensure accuracy.