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:

Social Comparison

The process by which individuals evaluate their own abilities, achievements, and conditions in relation to others, often to assess self-worth or social status.

Providing Information

The act of supplying facts, data, or knowledge to someone.

Vis-à-vis Others

In relation to or in comparison with others.

Pretense/Symbolic Play

Play that occurs when a child transforms the physical environment into a symbol.