Which of the Following Is a Major Provision of the Sarbanes-Oxley

question 29

Multiple Choice

Which of the following is a major provision of the Sarbanes-Oxley Act?

• A) Audit firms are prohibited from doing consulting work for corporations while also auditing their books.
• B) It creates a Private Company Accounting Oversight Board to oversee accounting firms and improve the accuracy of their audits.
• C) Every board of directors must create audit committees consisting of independent directors who receive consulting or advisory fees from the company other than their compensation.
• D) Boards of directors are permitted to,at their discretion,approve personal loans for company executives.

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Definitions:

Matched Pairs Experiment

An experimental design in which participants are paired based on certain characteristics, and each pair receives both treatments in a random order to compare outcomes.

Paired Differences

The differences between each pair of observations on two variables, used in statistical analysis to compare two related samples.

Snowfall

The phenomenon of meteorological precipitation where snowflakes, composed of ice crystals, fall from clouds.

Significance Level

The probability of rejecting the null hypothesis when it is actually true, used in hypothesis testing as a threshold for making decisions.