Which of the Following Is NOT a Restriction Placed on Audit

question 11

Multiple Choice

Which of the following is NOT a restriction placed on audit partners by Sarbanes-Oxley?

• A)Limits engagement partners to a five-year term as the engagement partner.
• B)Limits other partners associated with the engagement to a seven-year term
• C)Engagement partners must review nonaudit work to insure that independence has not been compromised.
• D)Partners that engage in selling services,other than audit,review,and attestation services,to an audit client are not independent with respect to that client.

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Definitions:

Classified Statement

A financial statement in which similar items are grouped together to facilitate better understanding and analysis of the company's financial position and performance.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of a business, whichever is longer.

Converted Into Cash

The process of liquidating assets or investments to generate cash flow or liquidity.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future, considered as current assets on a balance sheet.