The Sarbanes-Oxley Act of 2002 Requires That the Audit Committee

question 71

Multiple Choice

The Sarbanes-Oxley Act of 2002 requires that the audit committee:

• A)Annually reassess control risk using information from the CPA firm.
• B)Be directly responsible for the appointment,compensation,and oversight of the work of the CPA firm.
• C)Require that the company's CPA firm rotate the partner in charge of the audit.
• D)Review the level of management compensation.

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Definitions:

Projective Tests

Psychological assessments where individuals are shown ambiguous stimuli and their responses are interpreted to uncover underlying thoughts, feelings, or traits.

Projective Test

A psychological assessment tool that uses ambiguous stimuli to elicit responses that reveal aspects of an individual's personality.

Omnibus Inventories

Comprehensive psychological tests that assess a wide range of personality traits, attitudes, or behaviors in one instrument.

Psychometric Instruments

Tools designed to accurately measure psychological variables such as personality, intelligence, and attitudes.