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:

Enforceable

Capable of being imposed or brought into effect legally, typically referring to contracts, agreements, or laws.

Offer

A proposal presented by one party to another with the intention to create a legally binding agreement upon acceptance.

Escrow Account

An escrow account is a financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction, ensuring fair and secure dealings.

Objective Theory

A legal principle stating that the terms of a contract are interpreted based on external expressions (actions, words) rather than internal intentions.