The Implementation of the Sarbanes-Oxley Requirements in the U

question 44

Multiple Choice

The implementation of the Sarbanes-Oxley requirements in the U.S.resulted in the creation of the PCAOB to oversee listed companies' auditors and develop audit standards.The impact of this requirement in Canada was

• A)the creation of new auditing standards to ensure better quality control for audits.
• B)revision to the rules of professional conduct for CPAs.
• C)additional training requirements for becoming an auditor.
• D)the creation of the CPAB to oversee Canadian audit professionals.

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Definitions:

Payback Period

The time required for an investment to generate cash flows sufficient to recoup the initial investment cost.

Rate of Return

A measure of the profit or loss on an investment over a specific period, expressed as a percentage of the investment's initial cost.

Minimum Required Rate

The lowest return rate necessary for an investment to be considered acceptable.

Net Present Value

Net Present Value (NPV) is a calculation used to determine the current value of a series of future cash flows, taking into account a specified rate of return.