The Reasoning Behind the Requirements of the Sarbanes-Oxley Act's Section

question 51

Multiple Choice

The reasoning behind the requirements of the Sarbanes-Oxley Act's section 404 (attestation on internal control over financial reporting) is that

• A)effective controls result in greater profits to organizations,reducing business failures.
• B)effective controls reduce the likelihood of future misstatements in the financial statements.
• C)better internal controls can be implemented at lower cost,improving product quality.
• D)automated controls improve customer service,resulting in higher product sales.

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Definitions:

Secretes Acid

Refers to the process by which certain cells or glands in the body produce and release acid, such as the gastric glands in the stomach that secrete hydrochloric acid for digestion.

Digestive System

A group of organs responsible for the breakdown and absorption of food, and the elimination of waste.

Stomach

An organ of the digestive system responsible for breaking down food through mechanical movements and gastric acid secretion.

Hemorrhoids

Swollen veins in the lower rectum and anus, often causing discomfort, pain, and bleeding.