Which of the Following Laws Makes It Mandatory for Organizations

question 55

Multiple Choice

Which of the following laws makes it mandatory for organizations to demonstrate that there are controls in place to prevent misuse and detect any potential problems?

• A) Sarbanes-Oxley Act
• B) Trade Expansion Act of 1962
• C) Electronic Communications Privacy Act of 1986
• D) Central Intelligence Agency Act
• E) U.S.A. Patriot Act

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Definitions:

Home Equity Indebtedness

Debt secured by a qualified residence that exceeds the acquisition indebtedness, with interest on such debt often being deductible under U.S. tax law.

Acquisition Indebtedness

Debt incurred in acquiring, constructing, or substantially improving a qualified residence of the taxpayer, and secured by the residence.

Qualified Residence Interest

Interest paid on a mortgage for a primary or secondary residence, which can be deductible for taxpayers who itemize deductions.

Deductibility

The extent to which an expense can be subtracted from gross income to reduce taxable income and lower the tax liability.