Which of the Following Services Are Allowed to Be Performed

question 86

Multiple Choice

Which of the following services are allowed to be performed for an attest services client by Sarbanes Oxley Act?

• A) Financial information systems design and implementation
• B) Management functions or human resources
• C) Internal audit outsourcing services
• D) Pension plan audits

Evaluate the financial impact of differing premium rates and discounts over time.

Understand and apply coinsurance clauses to calculate insurance payouts and policyholder responsibilities after a claim.

Analyze the financial implications of insuring properties at various values and understanding short-rate refund policies.

Apply mathematical formulas to compute insurance company refunds based on short-rate cancellations.

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Definitions:

Retained Earnings

Retained earnings are the portion of a company's profits that are kept or retained rather than being paid out as dividends to shareholders, used for reinvestment in the business, debt reduction, or other purposes.

Cost of Equity

The return that investors expect for investing in a company's equity, often calculated using models such as the Capital Asset Pricing Model (CAPM).

Floatation Costs

Expenses incurred by a company in issuing new securities, including underwriting fees, legal fees, and registration fees.

Tax Effect

The impact of taxation on business and investment decisions, including the influence of taxes on cash flows, investment returns, and financial planning.