Which of the Following Is Not a Requirement of SOX

question 148

Multiple Choice

Which of the following is not a requirement of SOX Section 404?

• A) Evaluate the design of the company's controls to determine if they adequately address the risk that a material misstatement of the financial statements would not be prevented or detected in a timely manner.
• B) Gather and evaluate evidence about the operation of controls.
• C) Implement key controls to determine their operating efficiency.
• D) Present a written assessment of the effectiveness of internal control over financial reporting.

---

Definitions:

Suggestible

Being suggestible refers to the tendency of an individual to accept and act on suggestions by others, often used to describe a person's responsiveness to hypnosis or persuasion.

Aerobic Exercise

Physical activity that increases the heart rate and maximizes the amount of oxygen in the blood, improving overall fitness and endurance.

Emotional Distress

The experience of negative emotions such as anxiety, depression, or fear, which disrupts daily functioning and well-being.

Posttraumatic Stress Syndrome

This is a psychiatric state induced by either going through or seeing a distressing occurrence, leading to vivid reliving of the event, nightmares, and profound stress.