Section 404(b) of the Sarbanes Oxley Act Requires That the Auditor

question 27

True/False

Section 404(b) of the Sarbanes Oxley Act requires that the auditor of a public company attest to management's report on the efficiency of internal controls over financial reporting.

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Definitions:

Multiple-step

An income statement format that separates operational revenues and expenses from non-operational ones, providing a detailed view of financial performance.

Balance Sheet

A financial statement that provides a snapshot of a company’s financial position, listing assets, liabilities, and equity at a specific point in time.

Prior Period Adjustments

Prior period adjustments are corrections made to an entity's reported financial information to amend errors or omissions from previous reporting periods.

Income Tax Effects

The impact of tax policies and rates on the income of individuals and businesses, affecting net income and financial planning.