According to the Sarbanes-Oxley Act, Members of the Audit Committee

question 7

True/False

According to the Sarbanes-Oxley Act, members of the audit committee must be members of the board of directors.

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Definitions:

Transaction Journal

A detailed record showing all the financial transactions of a business, used for accounting and auditing purposes.

Internal Control

Processes and procedures implemented by a company to ensure integrity of financial and accounting information, promote accountability, and prevent fraud.

Management Reports

Comprehensive analyses and summaries of financial and operational data, prepared for internal management use.

Inventory Reports

Detailed documents that track the quantity, location, and status of inventory items within a business, aiding in inventory management and control.