The 2002 Sarbanes-Oxley Act Forbids Use of an Audit Committee

question 53

True/False

The 2002 Sarbanes-Oxley Act forbids use of an audit committee by the board of a publicly held corporation; the full board must oversee the work of the public accounting firm employed to audit the corporate books.

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Definitions:

Larger Goal

An overarching ambition or aim that guides a set of smaller objectives or tasks.

Ingroup Bias

The tendency to favor and extend better treatment to members of one's own group over those of other groups.

Outgroup Homogeneity

The perception that members of an outgroup are more similar to each other than they actually are, or more similar than members of the ingroup.

Uncertainty-Identity Theory

The theory that people join and identify with groups in order to reduce negative feelings of uncertainty about themselves and others.