Which of the Following Is NOT a Restriction Placed on Audit

question 11

Multiple Choice

Which of the following is NOT a restriction placed on audit partners by Sarbanes-Oxley?

• A)Limits engagement partners to a five-year term as the engagement partner.
• B)Limits other partners associated with the engagement to a seven-year term
• C)Engagement partners must review nonaudit work to insure that independence has not been compromised.
• D)Partners that engage in selling services,other than audit,review,and attestation services,to an audit client are not independent with respect to that client.

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Definitions:

Debt

An amount of money borrowed by one party from another under the condition that it is to be repaid, usually with interest.

Net Profit Margin

A profitability ratio that measures the percentage of each sales dollar that remains as profit after all expenses, including taxes, have been paid.

Net Income

The total profit of a business after subtracting all expenses from total revenues.

Operating Income

The profit realized from a business's operations after deducting operating expenses such as wages, depreciation, and cost of goods sold.