The Sarbanes-Oxley Act,passed After the Fall of Enron and Arthur

question 94

Multiple Choice

The Sarbanes-Oxley Act,passed after the fall of Enron and Arthur Andersen,requires accounting firms to separate the auditing function from the consulting function.This example illustrates

• A) organizational complexity.
• B) how changing conditions are influenced by innovation.
• C) why control is necessary to reduce the accumulation of errors.
• D) how control helps organizations respond to changing standards.
• E) All of these choices

---

Definitions:

Avoid the Risk

A risk management strategy involving actions to prevent exposure to a risk, often by choosing not to engage in an activity.