Under SOX, the External Auditors Must Now Report To

question 24

Multiple Choice

Under SOX, the external auditors must now report to:

• A)the management of the company being audited.
• B)an audit committee.
• C)the Securities and Exchange Commission.
• D)the Public Company Accounting Oversight Board.

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Definitions:

Court

A governmental institution authorized to resolve legal disputes and administer justice.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances.

Comparative Negligence

A legal doctrine that apportions damages based on the degree of fault attributable to each party in a lawsuit.

Strict Liability

A principle that holds parties accountable for damages irrespective of preventive measures or caution exercised.