Under the Sarbanes-Oxley Act, the Auditor's Responsibility with Respect to Internal

question 36

Multiple Choice

Under the Sarbanes-Oxley Act, the auditor's responsibility with respect to internal controls can best be stated as:

• A)Develop a system of internal controls that helps to prevent and detect fraud
• B)Assess whether the internal controls helps to prevent and detect fraud
• C)Assess management's report on internal controls
• D)All of the above

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Definitions:

Voluntary Alliance

A partnership formed by choice between organizations or individuals to achieve a common goal.

Fair Practices

Ethical business strategies and policies that seek to ensure fairness, equality, and transparency in dealings with stakeholders.

Environmental Scanning

The continuous process of gathering information about external influences and trends to identify opportunities and threats affecting an organization.

Environmental Forces

External factors such as social, political, ecological, and legal aspects that affect an organization's decisions and performance.