Under the Sarbanes-Oxley Act of 2002, Who Is Responsible for Paying

question 25

Multiple Choice

Under the Sarbanes-Oxley Act of 2002, who is responsible for paying the independent auditor?

• A) Management
• B) Audit committee
• C) Government who has jurisdiction over the corporation
• D) American Institute of Certified Public Accountants (AICPA)

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Definitions:

Interim Accounting Procedures

The processes and practices used to prepare financial statements for periods shorter than a fiscal year, such as quarterly reports.

Year-End

The end of an accounting period, either the calendar year or a company's fiscal year, at which time various financial statements are prepared.

Cash Flow Ratios

Financial metrics used to assess how efficiently a company generates cash to pay its debt obligations and fund its operating expenses.

Operations to Sales

A financial ratio used to analyze a company's operational efficiency by comparing its operating income to its net sales.