The Sarbanes-Oxley Act of 2002 Dramatically Changed the Daily Work

question 36

Multiple Choice

The Sarbanes-Oxley Act of 2002 dramatically changed the daily work of financial accountants and auditors because it

• A) expanded the scope of the audit beyond financial information
• B) required that organizations work with their auditors to design systems of internal control
• C) required that external auditors report on the effectiveness of an organizations system of internal control
• D) expanded the opportunities for auditors to engage in consulting activities with their audit clients

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Definitions:

Unplanned Change

Change that is imposed on the organization and is often unforeseen.

Excise Tax

A tax levied on specific goods, services, or transactions, often included in the price of the product or service.

Computer-Controlled

Systems or devices managed or operated by computer algorithms or software rather than directly by human intervention.

External Change Agents

Individuals or organizations from outside an organization who are brought in to oversee or facilitate change management processes and organizational transformations.